The most important thing to bear in mind is that once the auction has concluded, if you are the winning bidder you are legally tied into the property. Things to consider:
- It is vital you let us see the legal pack in good time before the auction. We can then look through it and advise you. Over the years we have helped many people avoid potential problem properties at auction
- Unlike an open market purchase there is either very limited or no opportunity at all to ask questions, whether they are legal or practical related. That is part of the risk
- If you are serious you should have a surveyor look at the property. Your risk in doing this is you do not win at auction and you lose the survey fee. Your risk in not doing it is you end up buying a property with serious structural problems or other issues
- You need to have access to ready funds as the completion date is set. If you are unable to complete you risk losing your 10% deposit plus interest and associated costs. Often mortgage finance will take longer than this
- As well as having to pay back the cost of searches, other things are often put into auction conditions such as paying the seller's legal costs
Buying at auction can be a quick and good way of purchasing a property so it’s not all doom and gloom. Just get as much information as possible before committing yourself.
Typically auction properties sell at less than 15% of their open market value so there is no guarantee as to what price you will get. It is advisable to put a realistic reserve on the sale price. Things to consider:
- Why are you selling at auction? If there is a legal or practical issue with the property let us know and we will happily chat through your options
- Unlike an open market sale you have to obtain searches which normally a buyer would get. Normally the cost of these would be refunded via the buyer in a successful sale but it would be an upfront expense for you
- Once the hammer has gone down at auction you have effectively exchanged contracts so both you and the buyer are tied in. There is no turning back!
- In most cases completion is 28 days after the auction. If you require a longer or shorter time period please let us know
- Instruct us as soon as possible. We can then start to prepare a legal pack. On an auction sale a legal pack is made available via the selling agent and will form an important part of any potential buyer's decision making process and whether they decide to bid or not. The sooner this is done and available the better
With our free initial telephone conversation and no hidden costs policy, finding out more about your options is straightforward. Call us today on 01273 838 756 to arrange a chat with one of our experts today.