Buying a house at Auction can be a thrilling way to secure a property in the city or the countryside. However, the process can seem daunting for first-time buyers. In this blog, we’ll walk you through how to buy a house at auction, with the essential steps to make your house auction experience smooth and successful.
Understand the Auction Process
Before diving in, it’s crucial to understand how auction property sales work. Properties are listed on the website, which provides details about each property, including guide prices. On the auction day, buyers gather online to bid on these properties. The highest bidder above the reserve price wins the Auction and must complete the purchase, usually within 28 days.
Research the Properties
Start by thoroughly researching the properties you’re interested in. Visit the auctioneer’s website and pay attention to:
- Guide Price: This is an indication of the seller’s minimum expectation.
- Reserve Price: This is the minimum price the seller will accept, though it’s not usually disclosed.
- Property Details: Look at the descriptions, photographs, and any available floor plans.
Arrange Viewings and Surveys
Once you’ve shortlisted properties, arrange viewings. If possible, inspect the property in person. If you’re unsure about anything, you can always consider hiring house surveyors.
House surveyors can provide a detailed report on the property’s condition, helping you avoid hidden issues.
Check the Legal Pack
Each property will have a legal pack prepared by the seller’s solicitor. This contains crucial documents such as title deeds, local searches, and any leases. Review this pack carefully, ideally with the help of a solicitor, to ensure there are no legal issues or restrictions that could affect your purchase.
Secure Your Finances
Before attending the Auction, ensure your finances are in order. If you plan to use a mortgage, get a mortgage in principle from your lender. Remember, if you win the Auction, you’ll typically need to pay a 10% deposit on the day and complete the purchase within 28 days, so quick access to funds is essential.
Register and Prepare for the Auction
To bid, you must register with the auction company and provide the necessary identification. Familiarise yourself with the auction rules and procedures. If the Auction is online, ensure you understand how to place bids and have a reliable internet connection.
Attend the Auction
Log in early on auction day and get comfortable with the surroundings. Pay attention to the auctioneer’s announcements, as they may provide essential property updates. Set a maximum bid for yourself and stick to it to avoid overbidding in the heat of the moment.
Bidding Strategically
When the property you’re interested in comes up for Auction, start bidding at a comfortable level below your maximum to see how the Auction progresses. If the bidding is competitive, don’t get carried away! There will always be other opportunities if you miss out!
Winning the Auction
If you’re the highest bidder when the hammer falls, congratulations! You’ll be required to sign the contract and pay the deposit immediately. The auctioneer will guide you through this process. Make sure you have your identification and payment method ready.
Completion
After winning the Auction, your solicitor will handle the final steps to complete the purchase. Ensure all your finances are in place to pay the remaining balance. Typically, you’ll need to complete the purchase within 28 days, so be prepared for a quick turnaround.
Final Thoughts
Buying a house at Auction can be a fantastic way to find a unique property, often at a competitive price. By doing thorough research, securing your finances, and understanding the auction process, you can confidently navigate the Auction and secure your dream property.
For more guidance on buying at Auction, visit our guide to buying at auction page. If you’re looking for upcoming auctions, simply search for “house auctions near me” or take a look at our future auction dates.
Auction property sales can provide great opportunities, but being well-prepared is essential. By understanding the ins and outs of property auctions, you can make informed decisions and increase your chances of success!
