|
View PDF | Print View
|
Nine Steps to Buying a Home at Auction
| How to bag a bargain property Desperate to buy a new place? Worried you can't afford to move? You could save money on your dream home by buying a property at auction. With house repossessions on the rise, lenders looking for a quick sale and homeowners wanting to cut out expensive fees, auctions are becoming more popular. But what is a property auction and how do you bag a bargain in the current climate? We go under the hammer to find out… Why buy a home at auction? For a private buyer, the main pull is landing an absolute bargain. Of course, it depends who else is bidding and how much you're prepared to pay, but generally speaking, homes go for less than they would through traditional selling routes. An added advantage is there's no risk of being gazumped. The property is sold on the fall of the gavel and the contract is binding. There's also no danger of the vendor changing their mind. Something to bear in mind, however, is auction properties often require renovation, which means additional cost. And once your bid's accepted, you have to pay for it, so take time over your decision and make sure it's the right one for you. Nine steps to auction success 1. Do your research An estate agent could advise you on which auction house to use. Alternatively, search the internet for ones in your area. Ask for a catalogue of all the properties available at the next auction. This will include guide prices too. 2. Arrange viewings Just like buying through an estate agent - you can view houses before auction to find the property for you. If you're serious about a property you could ask a surveyor to view it with you. They will check for things like dry rot and other potential problems. 3. Sort your finances You must pay a deposit of 10% on the day of auction, so make sure you have available funds to cover this. If not, you might want to consider a loan. And give yourself plenty of time to sort out a mortgage because once a bid's accepted, you have just 28 days to pay the amount in full. Be sure to compare mortgage deals. 4. Set yourself a budget Decide on a spending limit and find out how much the property would be worth in real terms. You want to be sure you're getting a good deal. 5. Practice Do a dummy run. Go along to an earlier auction to see how it all works. Alternatively, take someone along who knows what they're doing. Tell them what you can afford to spend so they can then stop you getting carried away! 6. Get there early On the day, make sure you know which order the properties will be auctioned off in. Arrive in plenty of time so you don't miss your chance. You'll also need to register interest with the auctioneer. 7. Bring your cheque book You'll need money, identification and your solicitor's details. Pick up an addendum sheet as well. This shows any changes that have been made to the properties up for auction. 8. Start bidding The auctioneer will announce the lot (your potential dream home) and then invite bids. Raise your hand and make your bid. If no one outbids, it's all yours! 9. Seal the deal! Your property is now only paperwork and money away. Fill out a purchaser's slip and provide proof of identification and your home address. You'll also need to pay your deposit. You'll then receive your part of the contract. Give this to your solicitor and completion usually takes place in 20 days. Remember to ensure that your property is covered by adequate home insurance at all times. |
About the Author
To read more about purchasing property please visit http://www.confused.com/home-insurance
Rating: Not yet rated
Comments
No comments posted.Add Comment
You do not have permission to comment. If you log in, you may be able to comment.