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How to buy a Property from an Auction, Guide and Tips

2019 raising finance to buy auction

Our property auction list is comprehensive; it should have a list of every property auction house in the U.K. 

Go to our property auction list page, select the location and auctioneer you want. Click the link to the auction house for the area you want. You will be able to download or view the online catalogue to see the lots for sale. 

You should consider subscribing to the auction email alert for future auctions.  

You can attend any property auction and sit through the sale, to get the feel of one of these auctions. 

Get your finances ready 

You will need to ensure you have the funds before you chose a property. 

Can’t attend the auction?

All auctions have facilities, for you to bid on a lot, without you attending the auction. Check with the auctioneer what options they have, that best suits you. 

Choose a lot 

Once you have gone through the auction catalogue, pick a lot you like.

You should check the information online for the lot and note when the viewing date is. Property auction houses usually set appointments for viewings; these are block viewings. They often set the viewing time between 15 to 30 minutes.

You should contact the auction house and double-check the date and time of viewing, just in case timing has been altered.

Viewing the auction property

If you have selected a lot, you are interested in. You should consider taking a builder or a surveyor to inspect the property. You may not have another opportunity to do this later, due to time restraints.

Checking the auction legal pack

Auction houses have adopted a procedure, where the seller provides, in advance, legal documents to them, for potential buyers to access. These documents are known as a “legal pack”. Any potential buyer can obtain legal packs online. 

Legal packs are free to download. You should download a copy for the property or land you are interested in. 

Check the legal pack to see if you are happy with what you have seen and read. The legal pack should always be checked by a property lawyer too. 

The small print in the legal pack needs proper scrutiny, so instruct a solicitor to check the legal pack thoroughly. It is essential to check the legal pack; however, sometimes, even more, important is what is not in the legal pack. A solicitor should be able to pick up any deficiency in the legal bundle. 

A tip for you. Auction houses can see from there website data, which lots have had the least interest. Auctioneers will generally tell you if a particular lot has had any interest or not? 

This information will indicate if the auctioneer is likely to accept, an offer before auction.

Consider getting a survey done before the auction

It’s not a legal requirement to obtain a survey; however, it may be a requirement for a lender, if you are relying on a mortgage.  

You can put in an offer before the auction date.

Nothing is stopping you making an offer before the auction date. Especially if the lot you are interested in has little interest.

The guide price is usually lower than the reserve

The guide price is set lower than the minimum reserve, to lure bidders. On average, properties could sell for 10% or more than the quoted guide.

Insure the property if you win the bid

If you win the bid, you may need to insure the property, as it may be your responsibility under the contract. Obtain an insurance quote before going to the auction to make things easier for you. 

Do not forget to take your I.D. to enable you to register at the auction. You will need your full drivers’ licence or a current passport with proof of address.  

You should check with the relevant auctioneer, what mode you can use to pay the 10% deposit, should you win the bid.

Be strong, be disciplined. 

Try attending the auction in good time. The common mistake some people make; is where they exceed the price they wanted to pay.

Settle in your mind, what you are willing to pay for the property you want to buy. Stick to this price and do not dither. 

Be cautious after a successful bid; the 10% deposit is non-refundable. If you fail to proceed with the purchase, you will not only lose the 10% deposit, but you are likely to incur hefty administration fees.

List of all property auctions throughout the UK. Book mark the auction list page for future

Source: British Landlords Association

Author: Marc Attwater

Date: 22nd of March 2020

The British Landlords Association – The BLA is a free national landlords association. Join us today!

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