Buying At Auction

  Lindsay Burden

If you are thinking of buying at auction the key essentials are:

·  Read the particulars of sale

·  Visit the site before bidding

·  Speak to the agent to ask questions about the site

·  Read the legal pack and check if there are any covenants or restrictions

·  Get a survey done (Home Condition Report) so you know what you are buying

·  Appoint a solicitor to read the legal pack and report back to you (and ask any questions on your behalf if necessary)

·  Get your finances arranged in good time (mortgage loans or releasing funding from notice accounts). NB you risk losing the survey fee if not successful but risk not knowing how much your lendor will provide and what you can bid up to if you fail to do this beforehand)

·  If tenanted, check the tenants are on an Assured Shorthold Tenancy and arrangements for their notice are in hand to ensure Completion can take place

·  Try to attend an auction before the day to get used to what happens

·  Only bid up to what you can afford

·  If you are nervous, go with someone or get someone to bid on your behalf

·  Stamp duty might apply – check what this would be beforehand

·  Auctioneer’s normally charge an auction admin fee and you are often liable for the cost of searches as you would be normally for a Private Treaty sale