Buying at Auction

Buying at auction can often get you a bargain, and buying property is no exception, but there are dangers which you should be aware of.

Normally you agree to buy a property, arrange your finances, instruct a solicitor and obtain a survey before binding yourself to an exchange of contracts. However, buying at auction means you are contractually bound to purchase at the time your offer is accepted. The completion date is also fixed at this point and is normally about four weeks after the auction but can be sooner.

Important points to consider when buying at auction:

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    Check the completion date on the conditions of sale before the auction. If you are not clear what the date is, ask the auctioneer;

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    You must have your finance arranged before bidding at the auction. Preferably this would mean that you have the cash available but could mean obtaining a formal mortgage offer in advance. Great care should be taken as penalty charges apply if you do not complete on the completion date and it can lead to you loosing your deposit or worse;

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    When buying at auction, you purchase the property in the state it is in at the auction, with any defects there may be. You should arrange a detailed inspection of the property and ideally a survey before bidding at the auction. Once you have bought the property and find there are hidden problems it will be too late;

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    Check carefully the auction pack to see if any expenses e.g. the seller’s solicitors fees, searches fees and auction expenses, will be payable by you in addition to the purchase price as this is often the case. It is also wise to get your Solicitor to check the Contract pack before the auction to make sure that the title and searches are in order.

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Our Services include:

  • Sales
  • Purchases
  • Transfer of Equity
  • Remortgages

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