House Auctions

[oulton]

I'm thinking house auctions might be the way to go for my first house purchase.

Has anyone bought bricks and mortar this way?

Also, are there any good sites you can recommend for house auctions?

 

[LeeUK]

Most houses at auctions usually require a lot of work to get them up to current modern standards.

Think Homes Under The Hammer.

 

[mo9204]

i was just watching that, nice house for 50k

 

[the shadow]

http://www.bbc.co.uk/programmes/b006v5kb

 

[[FnG]magnolia]

Houses over here are almost all at auction now due to shortage and go against everything LeeUK said. Ours was [redacted]

I'm aware that I live in a different country though

 

[bitslice]

Depends if you have any building skills or not, otherwise you will be at the back of the queue behind the Indians/PK's who make this their living.
Unless you can spot a potentially serious problem, you are also liable to buy a lemon or spend a lot of money surveying houses that everyone else has already walked away from.

Occasionally you can find rural houses quite cheaply because they are not where anyone wants to live.

 

[PapaLazaru]

First and foremost you really need to be a cash buyer. You have to pay for the house immediately after purchase, which you cannot do if you require a mortgage.

 

[Mercenary Keyboard Warrior]

First and foremost you really need to be a cash buyer. You have to pay for the house immediately after purchase, which you cannot do if you require a mortgage.

Actually I believe its normally within 4 weeks. Although this could vary. You still need to complete the normal solicitor process which you cannot do immediately, although its typically a lot lot faster with no searches etc since you would do these up front before you went to auction if you planed to do them at all.
People regularly do buy auction properties with mortgages, buy to let investors etc. They will get an in principle agreement up front to speed the process.

I think you do however have to place a decent cash deposit immediately, which you will be fined from (interest and fees) should you fail to complete the transaction within the specified time.

 

[Mercenary Keyboard Warrior]

"Successful bids
If you bid successfully, you’ve entered a contract with the seller. You’ll be given a bidding slip and asked to supply the name of the buyer and solicitor involved. You’ll then have to pay a deposit of 10% of the sale price, or the auctioneer’s minimum deposit, before the auctioneer’s clerk can prepare the contract.

You must sign the contract before leaving the auction room, and give a copy to your solicitor. The auctioneer will ensure the seller’s solicitor receives a copy of the contract. Completion usually takes 28 days, though sometimes special conditions require a faster completion."

 

[Slade2]

I would imagine unless you have viewed the house and know what you are looking for before had which of course sometimes isnt possible with auction properties I wouldnt bother. I was talking to my brother in law a while ago about this and there was some guy who brought a house at auction that he knows where they had tried to cover up the fact that the house was essentially falling down (subsidance had caused one side the the house to sleep so it was essential split right down the middle) they covered it up and it was only months later they found out but as with most auction properties they are sold `As is` with no guarentees either. I think the house was demolised and rebuilt in the end.

 

[Stretch]

Actually I believe its normally within 4 weeks. Although this could vary.

You need an upfront deposit (typically 10-20%) which you lose if you don't pay in full within the time period. This is normally a couple of weeks.

Mortgages are normally problematic due to the condition of the property. They'll want a full servery etc which is hard to tie up in such a short time period.

 

[karl515]

I have thought about this but not sure if i'd be willing to risk it unless it was a real bargain!