How To Buy Property at Auction: The Essential Guide to Winning Property and Buy-to-Let Bargains

How to buy a property at auction

---

It is easy to get carried away but try to remain calm and within your set budget. The auctioneer should make it quite apparent where and what the current bid is in the room. Some auctioneers will also accept telephone or proxy bids, in which case the auctioneer will require written authorisation from you and a cheque for the deposit this is calculated on the amount of your maximum bid. If your bid is successful, you will be required to sign the contract and pay the deposit there and then.

Cars & travel

At the fall of the auctioneer's gavel, you will be bound by the terms and conditions of the sale and liable for the insurance of the property from that moment. Pulling out of the sale after this could result in huge after costs. Most auctions require a 10 per cent deposit on the day and will require two forms of ID.

You then usually have between 14 days to six weeks to complete and pay the remaining balance of the purchase price. Any outstanding costs and completion details will be clearly stated in the conditions of sale. In the instance that a property remains unsold, the auctioneer may have the authority to sell it privately in the room immediately after the sale. When it comes to purchasing additional residential properties, such as second homes and buy-to-let properties, buyers now have to fork out an extra three per cent in land tax fees.

Moving house is one of the most stressful things you will ever have to do and with so much going on, it can be easy to forget something essential. Read our tips on how to make it easy. Search for a Propertymark Protected expert to ensure your property is in safe and reliable hands. This site uses cookies, to find out how click here.

By continuing to use this site you agree to our use of cookies. Associated Sites Find an Expert. Find an Expert Advice and Guides. Making Moving Day Easy Moving house is one of the most stressful things you will ever have to do and with so much going on, it can be easy to forget something essential. Find an Expert Search for a Propertymark Protected expert to ensure your property is in safe and reliable hands.

Find one of our experts Choose specialism Sales Lettings Auctions. Within 1 mile 2 miles 5 miles 10 miles 20 miles. You will avoid the lengthy purchasing procedures that are normally unavoidable when purchasing a property by private treaty. It also means that there is no risk of everything falling through at the last minute — at an auction, as soon as the hammer falls the property is legally yours.

This therefore means that you must be fully prepared and ensure you do sufficient research before attempting to purchase. Whether you are looking for your dream home, to find a suitable property for the rental market or to buy a property with renovation potential to sell for a profit, it is likely that you will be able to find a variety of potential bargains through the large number of property auctions that are held in the UK.

Our useful guide to Buying at Auction will help you to prepare for your potential purchase, by providing information on the step by step process.

When establishing your budget it is important that you ensure that these funds will be available when necessary. The remainder of the funds will need to be available at the stipulated completion date, typically 20 — 30 days after the auction. If you are purchasing the property using a mortgage, you should not bid at an auction if you have not yet received a mortgage offer. When approaching mortgage lenders it is vital you let them know you intend to buy at an auction, and it is advisable to obtain an Agreement in Principle before you start your property research.

Guide Price Although a property may have a guide price this does not necessarily mean it will sell at that price as the reserve set by the vendor is invariably higher, with the guide price being set low to conjure up interest. As a rule of thumb expect properties to sell for between ten and thirty percent above their guide price, although sometimes a property will sell for over double its guide.

Make sure you calculate your budget based on realistic figures, rather than using the guide price in the auction catalogue. Property location As with all property purchases, buying at auction starts with identifying the geographic area that you wish to look in. With property auctions being held all over the country, you can widen your search as much as you want in order to find the right property. To find all the latest property auction action use this site www.

Follow the Author

The catalogues give some brief details of each property along with photos and a guide price. Property Size If you are planning to purchase a property to live in yourself, then you must obviously take your requirements for size into consideration. If you are intending to rent the property out, then you must consider the market you wish to attract.

Do some research on the type of rental properties available in the area to get an idea of which type of property would work best within your budget. This will help you to streamline your search. If you wish to purchase a property for renovation purposes then you need to consider the potential options that each property presents. There may be various options to split the property into multiple properties that could increase the potential profit. This means you own the land and property outright. Practically all flats in the UK are sold on a leasehold basis, whether house conversions, new build flats or purpose-built blocks.

Buying property at auction | UK Property Auctions

Leasehold means that you own the property for a set number of years, as specified in the lease — this can be anything between a few years to years. Bear in mind that if a lease is for a short term i. The flat can still be bought and sold within that period. Ordinarily, you will be required to pay the Freeholder a Ground Rent, which is effectively a rent for the land that your property is on.

This can be a nominal figure known as peppercorn rent or an annual charge, the amount depending on the location and size of the property.

When a flat is leasehold there will be a management company that is responsible for maintaining the structure and common areas. There will be a charge payable annually by the management compsny for this service. Often, the leaseholders are represented on the board of the management committee for the building thus making sure the leaseholders views and interests are aired to the management company. The management company will create an annual service charge budget, based on previous expenditure and predicted costs.

They will also build a reserve fund to cover any exceptional maintenance that needs to be carried out. It is quite common now for the management function to be outsourced on behalf of the freeholder and leaseholders to a company that specialises in managing leasehold buildings. Once you have found a possible property, it is always worth carrying out some initial simple checks that will mean you have a better idea of whether the property really is suitable before incurring any serious costs.

Check the purchase prices that have been paid on similar properties in that area with one of the websites listing the property transaction information such as www.

Editorial Reviews

View current asking prices using one of the online estate agencies like www. Get a guide on the demographics of the area use a website like www. It can also be useful keying the postcode in with quotes into www. Many council websites now have search facilities allowing current and previous planning applications to be viewed online. For a small fee you can obtain a copy of the title register and plan for property in England and Wales from the Land Registry at www.

Sometimes if a property fails to meet its reserve it may be put up for auction again with the same or different auction house. Check if the property is being auctioned second time round and find out from the first auction house what the reserve was. This will help you to see if the figures you have budgeted for are realistic. Having performed some initial investigation you will then need to visit the property and check out the surrounding area.

At this stage you may want to take a surveyor along with you. It is always advisable to appoint a surveyor at some stage before the auction especially for older properties. They are qualified to advise on any structural issues that may cause future problems or that could inhibit any renovation plans you may have.

Most auction properties have a timetable setup by the auction house for viewing the property. This is normally published online. Phone the auction house in order to register your interest in the property and also take this opportunity to ask them for some more details about the property e. Sometimes it will be down to a local estate agent to organise the viewings and again the same type of questions can be asked of the agent as listed above.

Agents are normally a good source of information regarding the property and area and most are usually only too willing to discuss these matters with you.

• Death at the Alma Mater (A St. Just Mystery)
• Your Simple Guide to a Voice Over Career
• Lesson Plans The Magicians Nephew
• The Day Job
• American Jihad
• Paleo Lunch and Dessert - Delicious, Quick & Simple Recipes
• A Skeptic Challenges a Christian: An honest conversation about reasons to believe