Ideally you should visit an Auction first to experience the atmosphere and understand the proceedings before you even think of making your first bid. Try to source future auctions as far in advance as possible. Identify the property lot that is of interest to you, from there on you can call the auction house to enquire about the viewing arrangements. The options may be any of the following; paying a deposit for the key, viewing the property unaccompanied, accompanied by a local agent or a group viewing may be arranged
It is important to work out exactly how much you can afford, this means the maximum price you are willing to pay, keeping in mind costs like repairs, redecoration, solicitor’s fees, survey, mortgage and removal charges. Along with that, remember that should your bid be successful you will be required to pay a 10% deposit immediately. Ensure that you are familiar with the payment methods of the auction house – some accept personal cheques, credit cards and most of them welcome bankers drafts and building society cheques. Usually you will be expected to complete within 28 days; therefore you need to have a firm mortgage. Do inform your lenders about your intention to buy on auction. Lenders will also require a survey to be carried out, to evaluate the condition of the property.
Arrange for legal assistance from either a solicitor or a licensed conveyancer. Legal inquiries such as Local Authority and land registry searches need to be carried out before you make your bid. Legal packs are available at a fee of £10 from the Auction House; this pack contains legal documents outlining special conditions of sale and details of title deeds. Make sure you inform the Auction House should you have a serious interest in a property, so that they can keep you informed of any changes. Buying a property prior to auction is also a possibility – if you desperately want a property or you want to eliminate the risk of being outbid – submit an offer in advance. You may be in luck if the vendor agrees to your offer. Double check that your lot is still available before you set off the sale.
The moment arrives, your lot number comes up, the auctioneer announces the address – now would be a good time to wave your card at the auctioneer and make your bid. When you registered your interest to buy you may have been given a bidding card, if not just raise your hand or catalogue to signal a definite intention to bid and catch the auctioneers eye. Should he receive a bid higher than yours, he will return to you in case you wish to better it. He will also warn you when the bid is about to close, usually three times….
Normally a property will have a reserve, if you meet it, the vendor is legally bound to sell it to you. If your bid is the highest and the reserve has been met, you are the winner. From here you need to fill in a purchase slip with your personal details and that of your solicitor. Then comes the signing of the memorandum of sale – this is your contract and should be sent straight to your solicitor.
For online bidders the process is pretty much the same but it is even easier as you can buy a house from the comfort of your own home. Some online auction companies are beginning to change the procedure slightly as you can now withdraw your bid after 15 days if you realise that you have made a mistake with your property selection. Finding a good and solid online auction house is your first step.
Many properties can be viewed online via virtual reality tours. This can usually give you a good idea what the property looks like alond with other important information. You may request copies of the property documents, 10 days prior to the auction date; this could be sent to your solicitor. If you are an online bidder you would be required to complete the bidding form with your personal details as well as the reference of the property that you wish to bid on; and the bid you want to put forward. Prior to the auction you will be notified by telephone if your bid is successful and your details are verified. You will be able to monitor the latest bids online and increase your bid at any time. Upon success you will be requested to pay a reservation fee and the contract will be sent to you to be completed and returned by fax. Completion takes place 28 days later. If the bid is unsuccessful, you will be notified and have the choice to raise your bid. The online facility closes 24 hours before Auction Date and the highest bid on any property is put forward into the auction room as a Proxy Bid unless the bidder decides to withdraw the bid. |
