How to Buy a House
Property Auctions: Buying a first home at an auction can often lead to a good buy - 90 per cent of the cheap property sold in the UK goes via auction.
The buying process is completely different from the 'normal' one as when your bid in an auction room is accepted, you are legally committed to the purchase. In effect, that final bid acceptance becomes the 'exchange of contracts' and you cannot pull out of the deal. By the same token, it also, of course, means you cannot be gazumped, nor can the vendor pull out at the last minute.
You must have the finances in place to go ahead with the completion (purchase) in the timescale required, usually 28 days. You must also have any deposit ready on the day of the sale - this might typically be 10 per cent of the purchase price.
To find out how much you can borrow, request mortgage advice. You will need to decide your 'walk away' or ceiling price based on what you think the property is worth to you and what you can afford. Do not go over this amount, no matter how much you are tempted. You must have the finances in place for 'completion'.
To find properties for sale by auction there are several websites that can help. Alternatively enquire with estate agents, contact local auctioneers or watch the local press. You should visit an auction without bidding first, to get a feel for how the proceedings work, and to ask the auctioneer any questions you might have.
Before you bid, make sure you have carried out all the relevant research. Have a survey done, ask your solicitor to check title deeds and carry out local searches. Make sure you know if there are any special conditions of sale, and view the property thoroughly before placing a bid. Contact a property solicitor to help you.
Tip: before ever bidding at a property auction, go to a few in your area as an observer to get an idea of how they work. They can be very nerve-racking! Another possibility is the reverse property auction.
Find out more about the house-buying process:
How Much Can I Borrow? l Find a Property lMortgages l Conveyancing Solicitors and Legal Costs l Stamp Duty l Property Insurance Home Information Packs l How to Budget l Surveys and Surveyors l Solicitors l Removal Companies l Utilities Companies l Buying a Repossessed Property
Most useful and most popular pages on this site:
Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership