Property Auction
Discussion
I have never been to one however a 2 bed that I went to see and nearly bought (bad timing) has just come up for auction.
When I went (beginning of the year) it was on the market for £230,000 ish. The guide price for the auction is now £110,000.
How do these things work? Turn up and bid with others....
How many people would attend normally?
Once you are the higest bidder is it the same as buying a house normally or do things have to be done there and then?
Any other pointers worth knowing?
When I went (beginning of the year) it was on the market for £230,000 ish. The guide price for the auction is now £110,000.
How do these things work? Turn up and bid with others....
How many people would attend normally?
Once you are the higest bidder is it the same as buying a house normally or do things have to be done there and then?
Any other pointers worth knowing?
Usually these are not for amateurs, a lot of problem property (deeds lost etc etc) goes through auctions.
However, these days more and more vendors are putting "normal" property through the auctions
If you bid and win you buy, simple as that. A deposit will have to be paid there and then, so only bid what you want to pay. You cant pull out afterwards.
However, these days more and more vendors are putting "normal" property through the auctions
If you bid and win you buy, simple as that. A deposit will have to be paid there and then, so only bid what you want to pay. You cant pull out afterwards.
How are you planning to fund this?
There will be an "auction pack" that will have been put together by the vendors solicitor, this should set out the title etc. You need to ask for this to be sent to you and you really need to instruct a solicitor to look at it to ensure that everything is OK and that you know exactly what you are buying. I imagine there are experienced folks who buy at auction without a solicitors input but without being rude you don't sound like one of these people!
There will be an "auction pack" that will have been put together by the vendors solicitor, this should set out the title etc. You need to ask for this to be sent to you and you really need to instruct a solicitor to look at it to ensure that everything is OK and that you know exactly what you are buying. I imagine there are experienced folks who buy at auction without a solicitors input but without being rude you don't sound like one of these people!
Piglet said:
How are you planning to fund this?
There will be an "auction pack" that will have been put together by the vendors solicitor, this should set out the title etc. You need to ask for this to be sent to you and you really need to instruct a solicitor to look at it to ensure that everything is OK and that you know exactly what you are buying. I imagine there are experienced folks who buy at auction without a solicitors input but without being rude you don't sound like one of these people!
Dont insult me! There will be an "auction pack" that will have been put together by the vendors solicitor, this should set out the title etc. You need to ask for this to be sent to you and you really need to instruct a solicitor to look at it to ensure that everything is OK and that you know exactly what you are buying. I imagine there are experienced folks who buy at auction without a solicitors input but without being rude you don't sound like one of these people!
no, your right, I havent a clue. To fund the property I have a large deposit but will need to borrow some funds. I am a first time buyer.
I wanted to go just to get an understanding of how it works, as its on the 13th I think it maybe too soon to jump in with both feet.
IF I did want to think about buying I need to get the pack and get it looked at asap? Is it too late to even consider buying?
ETA - I'm an old poster but deleted my cookies and forgot my password!
Edited by annonanon on Tuesday 7th October 10:17
You would want to get pre approved lending on that property before proceeding to auction, if you win and pay up the deposit on the day then that is in effect the exchange of contracts, you then have a set number of days to complete (so if you can't suddenly get the rest of the money together then you risk losing your deposit). With lending tight, I would definitely get a mortgage valuation done and the lending approved in writing before even thinking about making a bid. It's a quick business.
M400 NBL said:
I think deposits are usually £2k or 2% of the winning bid, whichever is highest.
Last two auctions i have been to have had 10% deposits with 28 day completions.Get hold of the aution pack they will probably be able to email it to you, it doesn't cost much to get a pack.
I think seeing as you are new to this and also a first time buyer then this is something you really need to have a mortgage offer ready for else you may end up with all sorts of problems in the end.
Also make sure you are fully aware of the condition of the house as it may not be as it was when you last viewed it.
One last thing, set yourself a limit and stick to it
Other than that good luck and Enjoy!
2 5HAN said:
M400 NBL said:
I think deposits are usually £2k or 2% of the winning bid, whichever is highest.
Last two auctions i have been to have had 10% deposits with 28 day completions.Get hold of the aution pack they will probably be able to email it to you, it doesn't cost much to get a pack.
I think seeing as you are new to this and also a first time buyer then this is something you really need to have a mortgage offer ready for else you may end up with all sorts of problems in the end.
Also make sure you are fully aware of the condition of the house as it may not be as it was when you last viewed it.
One last thing, set yourself a limit and stick to it
Other than that good luck and Enjoy!
sam.r said:
Shame really I nearly bought the same place for over twice as much last year.
Do remember that guide prices don't really equate to what they necessarily expect it to sell for, so it's not strictly the case that it has lost 50% in 12 twelve months, not yet anyway. Sometimes a nice low "guide" will be used to entice buyers to auctions, it's more often and indicator of the reserve set but again not always and the reserve could still be considerably higher - ultimately it will sell for what someone is prepared to pay for it on that day (or not sell), the more buyers there (enticed by possibilities of a bargain) the less chance of that bargain actually happening. These are strange times though so who knows what might happen on the day, I am sure there are some proper bargains to be had. You need 10% on the day - and 28 days to complete...
OP, if you don't mind me asking, what area is the flat in - it's just I'm attending an auction V soon and it's for a flat with a guide price of 110,000 and that was for sale around the 230,000 mark earlier this year .. it could never be the same one, not in a million years
OP, if you don't mind me asking, what area is the flat in - it's just I'm attending an auction V soon and it's for a flat with a guide price of 110,000 and that was for sale around the 230,000 mark earlier this year .. it could never be the same one, not in a million years
sam.r said:
Epping, Essex
Is it the one?
ETA - Just seen your profile - it must be the same. 2 questions:
Are you going to it?
Whats you max bid
Second Bedroom is a bit small but its a nice flat!
Holy crap.... that's insane! I actually already own two flats in this development - so it'd be my third. What's your relation to Epping - you don't happen to be involved with any eateries around here do you?!!?Is it the one?
ETA - Just seen your profile - it must be the same. 2 questions:
Are you going to it?
Whats you max bid
Second Bedroom is a bit small but its a nice flat!
Edited by sam.r on Wednesday 8th October 00:15
I know of two other people who will be bidding and they don't know that I know...
sam.r said:
Small world! No relation to restaurants why do you ask?
As you already have 2 I think I should get this one.... Tell the others not to bother going and i'll buy you a pint. Ta very muchly!
LOL - well as a pointer - I was offered the place at 160,000 before they decided to put it to auction and I turned it down. A certain chap related to a V nice restaurant in Epping is apparently bidding as is a certain local hotelier (that's not you is it???) ... there's a big damp problem in the flat & complex in general - that many of us are starting to fight out with the original builders as they are obligated to sort it... as it stands - there's a quite a lot of work involved in getting the flat to proper spec - I have a mint flat identical layout and it's a real beauty - you'd be shocked at the size and how big it actually turns out.As you already have 2 I think I should get this one.... Tell the others not to bother going and i'll buy you a pint. Ta very muchly!
Were you looking to buy to live in or rent out? If you're sincerely interested - you're welcome to stop by and I can show you the carpark, exits, communal areas on both sides of the development + point out all the issues that you'd come across if you were to buy.
Edited by LDNrevs on Wednesday 8th October 00:40
I was looking as a btl, no I have nothing to do with that industry at all I work in importing goods among other things.
Its too short notice for me however i've been in one on the top floor and liked it. For 230k its a bit to much for me.
I try and go to it but if not let me know what the outcome is! (or if you spot anything else you dont want at a good price!)
Its too short notice for me however i've been in one on the top floor and liked it. For 230k its a bit to much for me.
I try and go to it but if not let me know what the outcome is! (or if you spot anything else you dont want at a good price!)
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