Buying a house at a property auction

April 17, 2016 by Brendan O'Neill

Advice & Tips

Buying a home is a complex process, and now that property prices are increasing, it can be even more difficult to save a sufficient deposit for a home. Property auctions are becoming more popular as more people are looking for a bargain, and sellers want a quick sale, but how safe is it really?

Every month there are lots of auctions taking place across the UK, and each auction house will publish a catalogue between two and four weeks prior to the auction. As there are tight time lines to abide by when buying at auction, it is better to have a mortgage agreed in principle before the auction is held. Once you have secured a property this way, you will usually be expected to pay a 10% deposit.

Do plenty of research before going to an auction, so that you have an idea of what’s available. Take a trusted friend with you who will stop you from getting carried away and bidding more than you agreed before the sale. Visit the property at least twice before bidding for it, so that you know exactly what you are buying, including potential repairs and renovations.

Make sure you pay for a comprehensive survey so that any expensive faults will be discovered before the contracts are exchanged. Prior to attending an auction, visit a mortgage adviser who has had CeMAP training, so that you know exactly what you will be able to afford and borrow from a lender. Once all the legal checks are done, enjoy bidding at auction for a dream home.