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Property Auction Tips by Homes under the Hammer Presenters

October 29, 2015

Preparing for auction

The main attraction of buying at auction is that you avoid the conventional drawn out process of house buying. At auction it’s condensed into a matter of minutes rather than months and when the hammer falls, you own the property.

Consult our handy guide before you attend your first auction:

• Contact the relevant auction house and request their catalogue. Most auction houses hold regular auction sales with a catalogue printed some weeks in advance. You can also subscribe to catalogue mailing lists.

• Go through the catalogue carefully, read the details thoroughly and identify the properties you are interested in.

• Do arrange a viewing of the lot(s) – viewing arrangements will be listed in the catalogue.

• View any properties you are interested in.

• Research the property thoroughly and ask local estate agents and neighbours for their opinions.

• Check the description of the lot in the catalogue is accurate.

• Carry out the usual property/land searches.

• Carefully read the conditions printed in the catalogue. Always get legal or professional advice from a solicitor and, in appropriate cases, a chartered surveyor.

• Make financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days.

• Plan ahead if you need mortgage assistance. It’s wise to arrange a mortgage in principal with a bank or building society before buying at auction. You could lose your 10% deposit if you fail to complete within the time given (normally within 20 working days).

• Be aware that buying at auction is a binding commitment and carries the same legal implications as a signed contract by private treaty. In most cases, auction offices have copies of legal documentation provided by the seller’s solicitors which can be sent to you.

• Remember to take two forms of identification, cheque book and all your banking details with you to the auction.

• If possible, arrive early and familiarise yourself with the empty auction room.

• On arrival, you may need to register with the auction house in order to bid prior to the start of the auction. Check with your auctioneer.

• On arrival, get a copy of any addendum sheet. These are distributed around the auction room and contain late information or alterations. Don’t assume that all the properties included in the catalogue will be offered on the day of the auction. Some may be withdrawn or sold prior to the auction.

• Take a seat or stand somewhere in the room where the auctioneer will able to see you bidding clearly.

• When placing a bid, make sure you gesture clearly at the auctioneer. Subtle twitches and winks will not be picked up. Either raise your hand or nod/shake your head clearly. The auctioneer will warn the room when he is concluding a sale.

• If a property fails to reach its reserve price, don’t give up! The vendor may decide to accept your bid later at the end of the auction. Make sure you leave your details with the auctioneer.

• Don’t forget that the property becomes the buyer’s insurable risk as soon as the hammer falls. The conditions assume that the buyer has acted like a prudent buyer. If you choose to buy a lot without taking these normal precautions you do so at your own risk.

Originally published by BBC Homes