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First time buyer - Is it safe to buy first property at auction?
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I would be very surprised if you could organise a survey then secure a mortgage prior to auction. All this would need to be done in less than 28 days. Plus if you don't win the property at auction you have lost the survey fees.1
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Scotbot said:I would be very surprised if you could organise a survey then secure a mortgage prior to auction. All this would need to be done in less than 28 days. Plus if you don't win the property at auction you have lost the survey fees.
OP also needs to bear in mind they need to do all of their due diligence before bidding - so getting their solicitor to review the legal pack, any surveys other than the mortgage valuation, getting any searches. All of which is wasted money if their bid is unsuccessful.1 -
Davesnave said:MalMonroe said:EasyToAssemble01 said:I'm a first time buyer, and this year is when I should be able to scratch the rest of my deposit together, to start looking at properties. I'm considering auction listings, as it may be a way to make my money go further, but wondered if there may be pitfalls for a first time buyer doing it this way? I have no idea what's involved in the auction process. Is it easier to be stung by hidden problems and issues with a house bought in auction? A friend mentioned that the allowed conveyancy / search period is a lot shorter for auction houses, which sounds stressful.
When you buy a house via auction you really have to know what you're doing. And you have to obviously look at the property before you buy. (Some people on the programme don't and it costs them).By all means watch it, but remember it's a reality TV show, mostly designed to be feel good and not a true reflection of the situation you'd be in without a TV company holding your hand. If you've ever witnessed situations where people have bought way out of their depth, you'll know they can become more Jeremy Kyle than HUTH!
Her courage will change the world.
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.3 -
EasyToAssemble01 said:I'm a first time buyer, and this year is when I should be able to scratch the rest of my deposit together, to start looking at properties. I'm considering auction listings, as it may be a way to make my money go further, but wondered if there may be pitfalls for a first time buyer doing it this way? I have no idea what's involved in the auction process. Is it easier to be stung by hidden problems and issues with a house bought in auction? A friend mentioned that the allowed conveyancy / search period is a lot shorter for auction houses, which sounds stressful.
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You will have to spend around £1000-1500 in fees before the day of the auction, and then you may be outbid.Most of the people buying at auction are effectively cash buyers. This may be borrowed money, but it’s not dependent on a mortgage on that particular property. They may be experienced enough to form their own views on the structure, without a survey, and they will probably pay for a solicitor to look through the auction pack. They will also make mistakes from time to time, but they will accept the risk and be able to ride out the bumps they take.No reliance should be placed on the above! Absolutely none, do you hear?2
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FreeBear said:Davesnave said:MalMonroe said:EasyToAssemble01 said:I'm a first time buyer, and this year is when I should be able to scratch the rest of my deposit together, to start looking at properties. I'm considering auction listings, as it may be a way to make my money go further, but wondered if there may be pitfalls for a first time buyer doing it this way? I have no idea what's involved in the auction process. Is it easier to be stung by hidden problems and issues with a house bought in auction? A friend mentioned that the allowed conveyancy / search period is a lot shorter for auction houses, which sounds stressful.
When you buy a house via auction you really have to know what you're doing. And you have to obviously look at the property before you buy. (Some people on the programme don't and it costs them).By all means watch it, but remember it's a reality TV show, mostly designed to be feel good and not a true reflection of the situation you'd be in without a TV company holding your hand. If you've ever witnessed situations where people have bought way out of their depth, you'll know they can become more Jeremy Kyle than HUTH!Thanks, I couldn't remember the name of that one. First episode was a couple of classy young ladies with connections to call upon, a good working relationship and a willingness to get stuck in. It was a push, but they did OK in the end.After that, I seem to remember things didn't go so well!!!
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I really wouldn't touch it; there are enough pitfalls for experienced property speculators, let alone for someone finding their feet for the first time. My partner and I have bought and sold a number of properties over the years and are well aware of the processes, but when looking for a property we'd pass by if it was being sold at auction - whether traditional or 'modern method of auction'.
If you look at threads on here, many first time buyers find the process stressful enough when their purchases are straightforward, let alone going down the auction route. I appreciate that you have a mortgage offer agreed in principle, but you do realise that you can still be turned down for a mortgage on a specific property if it doesn't meet the lender's standards, don't you? Given that many properties are sold at auction precisely because they're unmortgageable, this is more likely to happen than if you just go the normal way. (You will still have paid the fees to establish this, though).
I totally understand that you want your money to go as far as possible - don't we all? - but this really isn't the way to go about it.2 -
I dont think it is something a ftb should do unless you know someone who has done auctions before and knows what to look for.
Even then it could turn out to be a money pit.
Yes it might be cheaper but how much of the savings made would be wiped out if you bought a property as you need to get a long list of repairs fixed.2 -
Falafels said:I really wouldn't touch it; there are enough pitfalls for experienced property speculators, let alone for someone finding their feet for the first time. My partner and I have bought and sold a number of properties over the years and are well aware of the processes, but when looking for a property we'd pass by if it was being sold at auction - whether traditional or 'modern method of auction'.
If you look at threads on here, many first time buyers find the process stressful enough when their purchases are straightforward, let alone going down the auction route. I appreciate that you have a mortgage offer agreed in principle, but you do realise that you can still be turned down for a mortgage on a specific property if it doesn't meet the lender's standards, don't you? Given that many properties are sold at auction precisely because they're unmortgageable, this is more likely to happen than if you just go the normal way. (You will still have paid the fees to establish this, though).
I totally understand that you want your money to go as far as possible - don't we all? - but this really isn't the way to go about it.
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EasyToAssemble01 said:Falafels said:I really wouldn't touch it; there are enough pitfalls for experienced property speculators, let alone for someone finding their feet for the first time. My partner and I have bought and sold a number of properties over the years and are well aware of the processes, but when looking for a property we'd pass by if it was being sold at auction - whether traditional or 'modern method of auction'.
If you look at threads on here, many first time buyers find the process stressful enough when their purchases are straightforward, let alone going down the auction route. I appreciate that you have a mortgage offer agreed in principle, but you do realise that you can still be turned down for a mortgage on a specific property if it doesn't meet the lender's standards, don't you? Given that many properties are sold at auction precisely because they're unmortgageable, this is more likely to happen than if you just go the normal way. (You will still have paid the fees to establish this, though).
I totally understand that you want your money to go as far as possible - don't we all? - but this really isn't the way to go about it.0
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