buying at auction?

[xrs]

I bought my house at auction. I would not listen to those who say one should not. However:

1. I asked my solicitor to conduct legal searches before the auction. (You do not have to wait until you are under offer. Many legal searches can be conducted at anytime. E.G; Is the property in a flood risk zone? Are there contaminants around that could effect the property? Are there any legal covenants on the property? Title deeds and boundaries?...) Many of these searches you can conduct yourself. You can look through them and use common sense. Do the environmental searches show that the house is sitting on top of Nuclear Waste? Perhaps a hyperbolic example, but you get the idea. You can potentially save money rather than paying a solicitor £££'s an hour to look through. I usually conduct as many searches as I am able to myself, if I see anything that worries me, I ping it off to the solicitor for a peruse.
2. I had a full building survey completed before the auction.
3. My financials were in place ready for the auction.

The risk is, you can spend money on solicitors/surveyors and not win the house. If you preform your due diligence, you can mitigate some of the risk.

 

[Showboat]

Are you able to link the house? Or playing cards close to chest!?

 

[Glaucus]

Are you able to link the house? Or playing cards close to chest!?

would rather ot, but there's not much on there atm, other than floor plan, even legal pack isn't ready yet.

I bought my house at auction. I would not listen to those who say one should not. However:

1. I asked my solicitor to conduct legal searches before the auction. (You do not have to wait until you are under offer. Many legal searches can be conducted at anytime. E.G; Is the property in a flood risk zone? Are there contaminants around that could effect the property? Are there any legal covenants on the property? Title deeds and boundaries?...) Many of these searches you can conduct yourself. You can look through them and use common sense. Do the environmental searches show that the house is sitting on top of Nuclear Waste? Perhaps a hyperbolic example, but you get the idea. You can potentially save money rather than paying a solicitor £££'s an hour to look through. I usually conduct as many searches as I am able to myself, if I see anything that worries me, I ping it off to the solicitor for a peruse.
2. I had a full building survey completed before the auction.
3. My financials were in place ready for the auction.

The risk is, you can spend money on solicitors/surveyors and not win the house. If you preform your due diligence, you can mitigate some of the risk.

what finances did you use?

 

[the_r_sole]

could you not table an offer prior to auction to let you set the terms rather than having to deal with the auction house, then if it fails you still have to choice to bid at auction?
It's all about due diligence but there is still an element of risk, tbh I would only take it on if i could afford to lose a portion of the money and/or spend a decent sum in repairing it.
It's one of those things that developers with trades on board can take a risk on, as a one off purchase it's going to be more expensive for you and you would be in danger of bidding too high in the auction room unless you are very disciplined to let it go (which is difficult if it's potentially a home for you)

 

[Muncher]

As a solicitor that has sold properties for clients at auction I would say it is 100% essential that your solicitor fully review and report on the title pack prior to bidding as there are likely to be all manner of problems in there. The problem is people don't want to spend this money on something which they might get outbid on at auction so don't bother. My last auction sale the buyer lost their deposit entirely as they failed to complete and were lucky not to be sued for the full amount.

Also, as someone who has bought a lot of properties personally recently I would not trust a lender with coming up with the money in 28 days.

In conclusion I would say auctions are best left to cash buyers who have good experience of buildings (they are builders, surveyors or developers) and have taken proper legal advice on the title before bidding.

It's not to say you can't buy "good" properties at auction but due to the nature of the process you are taking a risk with probably the biggest purchase you will ever make.

 

[Skillmister]

As a solicitor that has sold properties for clients at auction I would say it is 100% essential that your solicitor fully review and report on the title pack prior to bidding as there are likely to be all manner of problems in there. The problem is people don't want to spend this money on something which they might get outbid on at auction so don't bother. My last auction sale the buyer lost their deposit entirely as they failed to complete and were lucky not to be sued for the full amount.

Also, as someone who has bought a lot of properties personally recently I would not trust a lender with coming up with the money in 28 days.

In conclusion I would say auctions are best left to cash buyers who have good experience of buildings (they are builders, surveyors or developers) and have taken proper legal advice on the title before bidding.

It's not to say you can't buy "good" properties at auction but due to the nature of the process you are taking a risk with probably the biggest purchase you will ever make.

Spot on

 

[SeatIbiza]

what a silly and unhelpful post, unlike others in this thread.

yeah because I don't realise the cost of the house is the biggest expense, are you really that stupid.

No, but it seems you are. I quote you stating the survey is the "biggest" cost, which you did say in your post: "yeah that's what I'm talking about its just the survey is the biggest cost."

The survey is monkey nuts, and likely won't actually tell you much useful. That is my experience of surveys and I stick away from them where I can.

If you don't want to take advice from people with experience in exactly what you're asking, then good luck. But none of what I put is incorrect. Take a risk or don't.

 

[Glaucus]

No, but it seems you are. I quote you stating the survey is the "biggest" cost, which you did say in your post: "yeah that's what I'm talking about its just the survey is the biggest cost."

see you're still being a totally idol. amazing how everyone else understands costs unlike you.

nothing about not taking advise, other than yours as its not worth the keyboard you typed it on.