Buying a property at auction

Mediamonarch

Hi, I am very new to this but this is something that has interested me. I have been looking at property at auction. 

Although I don't have enough to be a "winning bid" I was interested in registering to bid to I can get a good feel for how it plays out and what it looks like from a bidders perspective as this is something I would like to learn for possibly bidding on a property in the future.

The website I have been looking at is "Auction Hammer, Midlands Property Auctions" and I have attempted to register to bid so I can at least watch the auction play out (and may even submit a low nonwinning bid just so I can get a feel for what submitting a bid is like on these sites). 

The only thing that I need help with is the part that asks for solicitor's information, this is a requirement in the registration and you can't proceed without this information filled in. 

The question I have (as I know very little), is how do I proceed in regards to having a solicitor? is the solicitor specific to the property that you are bidding on? Do you sign up for a local solicitor with some kind of yearly membership? any advice is helpful I have some mild learning difficulties so would appreciate the clear advice on this one. Thank you

propertyrental

You'd be mad to bid. You might win.....

And you don't need to register:

Please read our How-to guide below as we take you through the process.
To watch the auction, you do not need to register, simply click on the link on our homepage on the day of the auction.

https://auctionhammermidlands.co.uk/buying-and-selling-at-auction/


Alternatively, find an action house near you and attend in person- you'll get a much better feel for things that way.

user1977

Have you bought a property before via the "normal" process? Auctions are not for people who aren't sure about what they're doing...

But to answer your question, you can engage a solicitor without paying them anything at the start. Just shop around for ones which are prepared to deal with auction purchases (which generally involve them having to review the legal pack at short notice).

baser999

And remember you have to have the funds to buy at auction

NameUnavailable

If you bid and it turned out to be a winning bid, you are legally obligated to buy the property, or pay substantial costs for not proceeding!!

AlexMac

Don't necessarily write this off

I bought an auction property with a mortgage even though that was daft- in fact my Bank (who'd initially said I was good for a loan) withdrew their offer a few days before the "complete in 28 days or loose your deposit" deadline, but luckily I smelt a rat and found another more helpful lender!

Read the legal pack and if you don't understand it hire a solicitor; choose a local one who responds to phone and email contact without bullsh17

Set your max budget; I got the auctioneer to bid for me, as I thought I wouldn't make the auction in those pre-online days.  I fact I did, but there was a phsychological advantage n their bidding for me- it put some other bidders off 

My purchase was a real success; it was a wreck so I had to spend £30k plus on it (roof, wiring, kitchen, bathroom, central heating...).  But it made a good rental profit (we installed the stepson and his mates as tenantsto get him out of our hair) and sold for twice the purchase price three years later.  But that was in the crazy late 20th/ early 21st Century when prices rocketed, so that aint happening in the 2020's?

But as other have said, make sure you have funding in place or rock-solid promised,  There are auction bridging funders but I bet they cost

user1977

AlexMac said:

Read the legal pack and if you don't understand it hire a solicitor

Hire a solicitor even if you think you do understand the legal pack...

propertyrental

user1977 said:

AlexMac said:

Read the legal pack and if you don't understand it hire a solicitor

Hire a solicitor even if you think you do understand the legal pack...

Before the auction, not after you've bid and won!