subject: How to Buy UK Property at Auction [print this page] How to Buy UK Property at Auction How to Buy UK Property at Auction
It is common knowledge that UK property auction is the place where you can buy properties at far below market prices and at times save as much as 40 percent. You will find that mortgage lenders in UK, as everywhere else, offer their re-possessed properties for sale in auctions. The mortgage lenders are invariably in a hurry to dispose off the properties and quickly realize cash and you will therefore find them offering throwaway prices. The mortgage lenders have a whole lot of apartments/houses/housing plots on their books and are desperate to get rid of them and realize their money fast. This is understandable as, strictly speaking, they are only in the business of money lending and not in real estate trade. Of course, there are also other properties that do not attract buyers and the owners put them up in UK auctions as part of distress selling. The fact is many buyers turn jittery and nervous with the UK auction bidding process. If you are really worked up, it will be prudent that you ask your solicitor or surveyor to take the floor and do the bidding for you. You can be present at the auction as a mute onlooker or if you are still tense, you might as well stay at home and wait to know what happened. Strictly speaking, there is no need to panic as many individuals from different backgrounds, with no prior experience in bidding at UK auctions, have successfully bought properties at far below market prices. It is of paramount importance that you conduct the necessary valuation/ survey of the property you intend bidding well before the auction date - so that you are not fooled into overpaying for the property. But also remember that while paying for the valuation/ survey charges, that there is no guarantee that you will be a successful bidder. This is an expense of a few hundred pounds that you will have to necessarily incur and ungrudgingly write off if you do not succeed at the auction. In fact, you should compulsorily have a full survey done, unmindful of the costs, to protect your interests. It is likely that the property you are bidding has come for sale because it has structural problems or some other entanglements. It is wise to know all about the property before venturing to bid. However, if you are in possession of surplus funds and looking for some profitable investments, then buying property in UK property auctions will be truly rewarding. Buying a property at UK auction is wholly different than buying the normal way. You will have to act speedily and get ready fast as the time gap from the date of announcement to the actual date of auction will not be more than three or at best four weeks. It is essential you set a price limit on the property you intend to buy and do not get carried away and impulsively go beyond the limit while bidding. The fundamental thing to learn while bidding at an auction is no property suddenly shoots up in value merely because some bidder is willing to bid a higher price. After all, you should be fully aware how much to pay as you would have conducted the valuation/survey and also arranged for a mortgage prior to bidding at the auction. Please remember that if your bid is successful, you will be legally bound to buy the property and there can be no going back. You will be asked to sign the contract on the spot and you will also have to make an immediate down payment deposit of 10 percent of the bid amount. The standard practice is you will be given 28 days to pay up the balance 90 percent and complete the transaction. One worthwhile suggestion would be that you should attend a few UK property auctions as an observer and get to completely understand the procedure before taking the floor to bid for any property.
