Bidding to win:how to buy a property at auction and bag a bargain home

Rightmove’s House Price Index shows that homes in the London area moved much more slowly this spring than they did a mere two years ago, almost 30% slower. Realizing this, it could be in your best interest to consider getting a home at auction. Often, you can have keys in less than a month and save a lot of coin besides.

That said, it’s not all beer and skittles, as costly mistakes can occur. There are some guidelines to go by. Fist, always visit the property. Word of mouth, even a floor plan, does not allow for the evaluation a home visit does. Be sure to factor refurbishment plans into your bidding costs. If a change was made that was not legally permissible there may be some cost for that as well.

Team up with a broker. Videotape your proposed property and show it to your would-be broker, also get him, or her, to visit the property. Then you both can decide what you can realistically borrow. Always read the legal pack for your possible property. You want to make sure the lease arrangement is for a minimum of 80 years, also that the owner has been the owner for at least 6 months and that you have at least 28 days to complete the transaction. Before arrival at the bidding site, know what you’re prepared to bid and make sure you have the standard 10% down required to hold the property, should you win. Lastly, you will want a solicitor who is very familiar with the auction world in your corner.

Key Takeaways:

  • Always visit a possible property buy in person, as word of mouth and a floor plan cannot possibly explain in detail all possible problems.
  • Read the adjoining legal pack very carefully, to ensure that among other things you have a full 28 days to finish your transaction.
  • You will also want to make sure that the property lease will be at least for 80 years and that the current property owner has been the owner for at least 6 months.

“Discover how to choose well and save money at a property auction.”

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