Buying from auction...

[Night Runner]

Is this a bad idea?

I have seen a number of properties being sold very cheaply, I'm assuming the majority are repossessions.

There must be a catch somewhere.

[cinque]

I would take the guide prices with a pinch of salt.

They are deliberately priced low to encourage attendance on the day.


Saying that, you do get the occasional bargain lot surfacing, in my experience they tend to be at the end.



Make sure you do your homework beforehand and go into it with eyes wide open. You will have to pay your deposit on the day if you're successful and complete within a given period of time.

In my experience its a far easier / more professional way of buying property.

Edited by cinque on Wednesday 5th January 09:00

[Dave_ITR]

Providing you have the funding in place there is no reason why not.

You will need to pay the deposit before leaving the auction.

[1]

I always thought they were for cash buyers only as you need to complete in 28 days and couldn't sort a mortgage that would complete that quickly.

Anyone ever bought at auction using a mortgage? If so who did you use?

[Engineer1]

When I was looking for my first house in Stoke I was tempted by Auction properties but after watching the difference in buying price and guide price the properties where selling for about the same if not a little more than those for sale in the usual way.

[Night Runner]

Sorry chaps I should have been more specific, I was looking at auction results, not guide prices.

[louiebaby]

If "Homes Under The Hammer" is anything to go by, the bargains all need a lot of work.

I'd be tempted for my next place, but I guess you have to be quick to get the purchase finished in the time frame. You'd need a chunk of spare cash for when you find that rot / damp / falling down kitchen if you're taking a punt though.

[993AL]

1 said:

I always thought they were for cash buyers only as you need to complete in 28 days and couldn't sort a mortgage that would complete that quickly.

Anyone ever bought at auction using a mortgage? If so who did you use?

Im going back 15 years. I paid 5% on fall of the hammer and balance within 28 days, it was through Northern Rock and had no problem raising a mortgage, could be different now though.

[98elise]

993AL said:

1 said:

I always thought they were for cash buyers only as you need to complete in 28 days and couldn't sort a mortgage that would complete that quickly.

Anyone ever bought at auction using a mortgage? If so who did you use?

Im going back 15 years. I paid 5% on fall of the hammer and balance within 28 days, it was through Northern Rock and had no problem raising a mortgage, could be different now though.

Yep a mortgage would be an issue these days. I recently remortgaged my current house (75% LTV). the hoops I had to just through were stupid. Proof of income (even though I've been with the same company for 13 years) required was....

A P60
Then a Pay statment
Then a bank statement showing the cash going into my account!
Then a letter from my company saying I did actually earn that each month (its not a huge sum)!!!

Probably 6-8 weeks from application to offer.....and thats on a house I already own!

Edited by 98elise on Wednesday 5th January 12:58

[98elise]

Night Runner said:

Sorry chaps I should have been more specific, I was looking at auction results, not guide prices.

I go to auctions, and there are a few bargains, however there is a reason they go to auction. In the main its because they are not suitable for mortgage, and those that are suitable tend to go for about market price.

You definately need to have your finance in place, and know what you want to bid for. The last auction I went to I intended to buy a particular property, I set my budget at 130% of the guide price, and it went for about 150% of the guide. Other properties went for the guide.