House Auctions

Why Buy a House at an Auction?  Most cheap property is sold by Auction.  When you buy a House at an Auction you buy at a competitive price - literally.  As well as properties that need to be sold quickly - therefore likely to sell cheaply, many unusual properties are sold at Auction.

Typical situations leading to the sale of a House by Auction include: repossessions - the lender is seeking to recover their money quickly but needs to show that a true market price has been obtained; sale of a house by the executer of a will; and the sale of any property that is unique or very unusual - making it difficult to assess the true market value.

Buying at an Auction may be especially suited to purchasing for the purposes of Property Development - many of the unusual properties may be in need of significant development to bring them to the standards expected of modern residential homes - Barns or old Churches may be available for conversion into exclusive dwellings.

Auction Bids are Binding  When you make a winning bid at an Auction (potentially any bid you make) it is a legally binding commitment.  You are buying the property as seen - unless it can be shown that the seller has deliberately set out to deceive the buyers about the true value or condition of the property, you will not be able to pull out of the purchase without incurring significant costs.  You will typically need to pay at least 10% as a deposit - not to be returned if you fail to complete the purchase within a defined period - usually just 28 days.  If anything should happen to the property within that period, you are still bound to purchase at the price you bid - you should make immediate arrangements for house insurance to cover this. 

Planning and Preparations  Since your bids are legally binding, you need to do your homework before the Auction - you need to view the property and arrange for appropriate searches and surveys.  You may want to make enquiries about the potential for planning permission or applicable building regulations.  You need to establish whatever financial arrangements are necessary to allow you to complete the purchase (including legal fees and commission) within the required timescale.

Keep in regular contact with the Auctioneers before the Auction - sometimes properties are sold in advance of the Auction.  If this happens you will need to know to stop any further preparatory work.

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House Auction

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