Buying a home at auction

March 10, 2017 by Brendan

Advice & Tips

Buying a property at auction may be a little intimidating for some, especially first time buyers, but with some professional advice and guidance, perhaps from a mortgage adviser who is CeMAP qualified, you could find your dream home.

Before being able to bid for a property at auction, you need to register with the auction house to register your interest. Properties which are due to be auctioned, are often marketed for 14 days online, giving you a chance to study the details of the house. Download the applicable legal packs and read them closely. If at all possible, view the property in person before the auction is due to take place. This will give you a better idea of the condition of the property and the local area.

Once you have found a property that you like, ask a solicitor to look over the legal documents and initiate the mortgage process to see if a lender is willing to give you a mortgage for the property. Once the bidding opens, generally for a week, you can register your online bid. Once your bid has been accepted, you will have to pay a deposit to the auctioneer, which is often around 5% of the price. This deposit is usually non-refundable and will be held until the contracts have been exchanged. Once you have exchanged contracts, you have 28 days to finalise the sale.

Speaking to a mortgage adviser and other professionals before bidding on a property, will help to increase your knowledge and help avoid making any errors.