Buying a house at auction is a fast process and might be risky. But you can get a better price without any bargain or maybe you pay more than the actual value. It might be risky but you can save a large piece of money through auctions.
Buying a house from auction is not a piece of cake. Its better for you to hire an expert for this job but if you considered buying a house by yourself then keep these five key points in minds.
Find a house at auction:
After you decide to buy a house at auction, the first step is to find a house at auction. Use a weekly property catalog to find a house. Mostly auctions in the UK provide properties in London and across the counties. Find a house after that go for other details.
Worth of property:
Sometimes you make a bid higher than the maximum value of the property. So you need a deep research about the worth of property. Decide your maximum bid according to the price of the property at auction. Your bid will not exceed than the actual price of the property.
No back out:
If you are the maximum bidder you cannot back out after the fall of the hammer. You must have to pay the price of the property. Experiences you get from the online auctions such as eBay, people change their mind and back out. This doesnt happen in real life.
In real life auctions, many people often apply the same rule. If you pull out of the auctions then you could face huge cost or may be taken to the court.
Read the terms and condition carefully:
The most important advice for auction buyer is to read the terms and conditions carefully. Entering a bid means you are agreeing to their terms.
You will be required to pay the charges and price in 20 Business days. So, you dont face any unexpected costs.
What you need to bring:
On the day of the auction, dont forget to bring your ID and methods of payment. If you are a successful bidder you need you to have to pay the 10% of the deposit. And you also have to pay the fee of the house at auction. The payment completion date is often 4 weeks from the auction date. But if you fail to deposit on time, you could be sued by the seller. For this reason, paying cash is the best method for buying property.
You can also buy the house before the auction but many sellers will refuse because they know prices could leap up in the heat of the moment.