Buying a property at auction query and advice.

Newheight13

Hello, 

We are looking at a property that is going to online auction. What I’m struggling to understand is the auction states  it must be completed a month later? Does this mean only cash buyers, as mortgages take a lot longer to go through? Can we also put in an offer now regardless? Any other tips would be great as I have no experience in this. 

user1977

If you have no experience then buying properties at auction is probably not for you. Yes, there will be a fixed completion date, so unless you're certain that you'll have funds then it could get very expensive. Plus auction properties often have problems which make them unmortgageable anyway.

theartfullodger

Newheight13 said:

Hello, 

We are looking at a property that is going to online auction. What I’m struggling to understand is the auction states  it must be completed a month later? Does this mean only cash buyers, as mortgages take a lot longer to go through? Can we also put in an offer now regardless? Any other tips would be great as I have no experience in this. 

Have you read the auction documents?? When I bought at auction there was a pack available which I slightly read.  

In my case I'd seen it advertised in an estate agents, went down to auction (a physical auction in an hotel .. many other lots... not all sold - I had previously driven past it but not even got out of my car) then when bidding started stuck my hand up.  (Any children reading this, do not do this..) But I could afford to gamble, had the cash (although I did mortgage it later)..

View from it's sitting room.... owned it for more than 20 years, rented it out most of the time, sold a couple of years ago. 

Smalltownhypocrite

Yes you have to complete in a set time or either lose the house while forfeit you deposit and auction fees and/or sometimes pay ongoing fees too.

RHemmings

theartfullodger said:

Newheight13 said:

Hello, 

We are looking at a property that is going to online auction. What I’m struggling to understand is the auction states  it must be completed a month later? Does this mean only cash buyers, as mortgages take a lot longer to go through? Can we also put in an offer now regardless? Any other tips would be great as I have no experience in this. 

Have you read the auction documents?? When I bought at auction there was a pack available which I slightly read.  

Quoted for extreme truth. There was someone on this forum some time ago who bought a house at auction. Then, too late, they found that the garden wasn't included in the purchase. Read the documents. Every word. Get advice (or just avoid) if there is stuff in there that you don't understand. 

Myci85

Is this modern method auction? I don't think anyone has a good word to say about them, you pay a big deposit and stand to lose it very easily by sounds through no fault of your own half the time. 

Newheight13

Thanks all! Enough said, I’ll be steering clear! 

RHemmings

Myci85 said:

Is this modern method auction? I don't think anyone has a good word to say about them, you pay a big deposit and stand to lose it very easily by sounds through no fault of your own half the time. 

There is a potential way around this. If someone is interested in a MMA property, then they can make an offer based on the sale being by private treaty. Which avoids the big deposit.