Guide to buying property at auction:
Downsides to buying at auction:
There are downsides to buying property at auction and the main thing to watch out for is that you don’t get into a bidding war and end up paying more than your limit for a particular property. The only cost is any money invested in researching or surveying the property would be lost if you are unsuccessful in your bid.
Costs of buying at auction:
- Auction fees which are typically around £200 – £400.
- Stamp duty.
- Solicitor costs.
- You are expected to pay for insurance on the property from the 1st day of ownership.
Top Tips for buying at auction:
Research the properties on the catalogue and create a list of the properties that you are interested in and then consider getting a survey.
Check over the legal pack and make sure that it includes the deeds, environmental searches, fixtures & fittings listings and any relevant leasehold information.
Do not expect to pay the guide price. It’s worth keeping an eye on the guide price and if it goes up then it means that there has been an increase in interest beforehand.
If you need a mortgage to finance the purchase make sure that the offer is in place before you go to auction.
Keep yourself calm, arrive early and make sure that you have completed all your research. Also, bring two forms of identification and proof that you have access to the 10% deposit. If you are the successful bidder then you will have to pay the 10% deposit on the day and the remaining 90% within 1 month.
If you are looking for the best cover and price on home or business insurance for your new purchase give Robert or Claire a call on 0800 085 3761.