Harry Monk Posted January 31, 2009 Share Posted January 31, 2009 When I do buy again, which won't be anytime soon, I'm thinking the best place to buy is at auction. Has anyone done this? What is the procedure? I presume you have to register with the auctioneer and prove you have the finances to pay? How long does the transfer take after you have paid? Any tips welcome. Quote Link to comment Share on other sites More sharing options...
profitofdoom Posted January 31, 2009 Share Posted January 31, 2009 When I do buy again, which won't be anytime soon, I'm thinking the best place to buy is at auction. Has anyone done this?What is the procedure? I presume you have to register with the auctioneer and prove you have the finances to pay? How long does the transfer take after you have paid? Any tips welcome. 10% deposit at the fall of the hammer.Completion usually 30 days.Be absolutely sure you have the funds available.Your deposit isn't a limit to your liabilty if anything goes wrong and a contract is deemed to exist from the moment the hammer falls. Quote Link to comment Share on other sites More sharing options...
cartimandua51 Posted January 31, 2009 Share Posted January 31, 2009 Various tedious money-laundering regs apply, so make sure you take lots of ID, proof of address etc. Quote Link to comment Share on other sites More sharing options...
hilltop Posted January 31, 2009 Share Posted January 31, 2009 The big issue is whether or not to have a survey done. While you can have surveys done on a number of properties before you are successful, it can be cost-efficient if you end up with a bargain and you want the re-assurance of a survey. If you are brave, you do without a survey, factoring in a figure for remedial work. The new legal packs take away some of the risk. One downside of having a survey is that at a small auction it can identify you as a keen buyer. This happened to me and the auctioneer tried to get an opening bid out of me which was beyond my top price. Basilisk stare. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted January 31, 2009 Share Posted January 31, 2009 (edited) When I do buy again, which won't be anytime soon, I'm thinking the best place to buy is at auction. Has anyone done this?What is the procedure? I presume you have to register with the auctioneer and prove you have the finances to pay? How long does the transfer take after you have paid? Any tips welcome. When there's hardly anyone else at the auction it's a good time to buy is the biggest tip I can offer. I could write reams of info. on buying at auction, just pay the right price - the lowest. Don't get into a pissing war, don't have the wife/bird fall in love with anything pre-auction, if someone wants it more than you let 'em have it, sometimes it's worth getting someone else to bid on your behalf with a limit that you give instructions not to breach. You'll be spoilt for choice over the next couple of years. You don't have to pre-register, if your bid wins then pay the ten percent dipper and complete within 30 days, to avoid charges. Take some ID with you, pay the dipper by cc. Talk to auctioneer a few days prior, they are a lot more flexible these days, leaking reserves etc. Best position is if the place you want doesn't sell doesn't reach reserve. You can then express interest, do a bit more research and with a bit of *tactics* turn it into a 'normal sale', without the ten percent up front payment/pressure. PM me if you want closer to the time, glad to help. Edited January 31, 2009 by Converted Lurker Quote Link to comment Share on other sites More sharing options...
hev Posted January 31, 2009 Share Posted January 31, 2009 When there's hardly anyone else at the auction it's a good time to buy is the biggest tip I can offer. I could write reams of info. on buying at auction, just pay the right price - the lowest. Don't get into a pissing war, don't have the wife/bird fall in love with anything pre-auction, if someone wants it more than you let 'em have it, sometimes it's worth getting someone else to bid on your behalf with a limit that you give instructions not to breach.You'll be spoilt for choice over the next couple of years. You don't have to pre-register, if your bid wins then pay the ten percent dipper and complete within 30 days, to avoid charges. Take some ID with you, pay the dipper by cc. Talk to auctioneer a few days prior, they are a lot more flexible these days, leaking reserves etc. Best position is if the place you want doesn't sell doesn't reach reserve. You can then express interest, do a bit more research and with a bit of *tactics* turn it into a 'normal sale', without the ten percent up front payment/pressure. PM me if you want closer to the time, glad to help. Converted lurker makes great valid points, it is worth adding a few things. Currently most auction properties do have a serious issue, that's why they are in the auction. Check the legal pack approx £12, looking out for deeds of covenent, rights of way , flying freeholds as well as obvious structural issues. If you dont complete after the specified time ( not always 30 days), you can be charged interest and usually given a further 10 days, you can then be sued for breach of contract. Always take a friend to the auction, get them to stand at the back to watch for bids being taken off the wall. It can be fun but always stick to your budget and never be afraid to negotiate for an 'unsold' bearing in mind the auctioneers do want their commission and data. Good luck Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted January 31, 2009 Share Posted January 31, 2009 (edited) I've watched Homes Under the Hammer so know a bit. Never have any price limit or plan in place for the auction Don't view the property or even the area, even basic research is a common novice mistake Aim to do any of the work yourself no matter your experience or ability. Price the job based on guesswork If someone starts bidding against you, then you have to bid higher no matter what or everyone will think you're a tw@t When auctioneer starts taking bids off the wall, never look to see who is bidding or think about not bidding Get two estate agents to value it, take the highest most insane price and put it on rightmove Job done. Edited January 31, 2009 by Mr. Parry Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted January 31, 2009 Share Posted January 31, 2009 I've watched Homes Under the Hammer so know a bit.Never have any price limit or plan in place for the auction Don't view the property or even the area, even basic research is a common novice mistake Aim to do any of the work yourself no matter your experience or ability. Price the job based on guesswork If someone starts bidding against you, then you have to bid higher no matter what or everyone will think you're a tw@t When auctioneer starts taking bids off the wall, never look to see who is bidding or think about not bidding Get two estate agents to value it, take the highest most insane price and put it on rightmove Job done. Never has a truer word been spoken in just ..... It is scary just how insane things got. Free money was there for the taking for about 6 years. Some nimble experts got in and out quickly. The ill-prepared mugs are now sitting on large inventories and losses. I suspect that we will see more and more houses at auction that would have never left the private treaty market just a few years ago. Quote Link to comment Share on other sites More sharing options...
Thread Killer Posted January 31, 2009 Share Posted January 31, 2009 The big issue is whether or not to have a survey done. While you can have surveys done on a number of properties before you are successful, it can be cost-efficient if you end up with a bargain and you want the re-assurance of a survey. If you are brave, you do without a survey, factoring in a figure for remedial work. The new legal packs take away some of the risk. One downside of having a survey is that at a small auction it can identify you as a keen buyer. This happened to me and the auctioneer tried to get an opening bid out of me which was beyond my top price. Basilisk stare. And what happened then - did the auctioneer have to drop the price, and did the bidding start from there? Did you win? Quote Link to comment Share on other sites More sharing options...
leob84 Posted January 31, 2009 Share Posted January 31, 2009 I'm really thinking to buy my next house from auction. Quote Link to comment Share on other sites More sharing options...
jimj Posted January 31, 2009 Share Posted January 31, 2009 Go to a few auctions without bidding. You'll get a feel for how auctions operate and that will help you when you really do bid at an auction. Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 31, 2009 Author Share Posted January 31, 2009 Go to a few auctions without bidding. You'll get a feel for how auctions operate and that will help you when you really do bid at an auction. Definitely something I would do. Also I would view any house I intended to bid on, from the outside at least, and check anything I could. I presume it is not possible to have an internal viewing of a property which is going for auction? As I would be buying a Victorian terraced house I would not expect serious structural problems, and in any event the entire area is built on solid chalk- slippage and underpinning etc are unheard of. I've got around £65k and that isn't enough yet, nor would I buy yet as I think we are not yet half-way through the crash. But if I did buy at auction for £65k, which would leave me with no money at all, I presume I could then take out a mortgage for, say, £20k with the Haliban or somesuch to obtain money for decoration etc? Quote Link to comment Share on other sites More sharing options...
nickincash Posted January 31, 2009 Share Posted January 31, 2009 Recently I seriously considered bidding on a house at an auction some considerable distance from me. I could have made a postal bid which would have meant paying 10% deposit in advance. I am deeply suspicious of the auction process paticularly as regards bidders who have revealed their maximum bid in advance. While I am am happy to do this on eBay there is not enough transparency in live auctions and I feel that I could be taken advantage of. Does anybody know how this works in practice? I hadn't considered the point about not letting the auctioneer know about having a survey done so that's worth bearing in mind. Another concern is that I could have paid for the survey and then found that the house has been sold prior to the auction or withdrawn and I would have wasted my money. In the event, for various reasons I didn't bid. The house sold for 260K having been originally advertised by EAs at 400K and having been reduced several times. I'm sure there is real value for money to be found in auctions especially for investors but I'm just wanting somewhere to live. Quote Link to comment Share on other sites More sharing options...
hev Posted January 31, 2009 Share Posted January 31, 2009 Definitely something I would do. Also I would view any house I intended to bid on, from the outside at least, and check anything I could. I presume it is not possible to have an internal viewing of a property which is going for auction? As I would be buying a Victorian terraced house I would not expect serious structural problems, and in any event the entire area is built on solid chalk- slippage and underpinning etc are unheard of. I've got around £65k and that isn't enough yet, nor would I buy yet as I think we are not yet half-way through the crash. But if I did buy at auction for £65k, which would leave me with no money at all, I presume I could then take out a mortgage for, say, £20k with the Haliban or somesuch to obtain money for decoration etc? Yes you can view and I would strongly advise it, usually viewings are block through local agents (if there are any left). The only exception would be if the building was deemed unsafe to enter. Usually people mortgage the equity in the house, how realistic this will be in the future, I have no idea Quote Link to comment Share on other sites More sharing options...
hilltop Posted January 31, 2009 Share Posted January 31, 2009 And what happened then - did the auctioneer have to drop the price, and did the bidding start from there?Did you win? He had got greedy, thinking I would chase it up. He started too high and got no bids. The property was put up as a straight sale. As it was overpriced, it stuck for a long time. I do not know what it eventually sold for. Eventually I found my present place at a good price. Patience rewarded. Quote Link to comment Share on other sites More sharing options...
FunkyGibbon Posted January 31, 2009 Share Posted January 31, 2009 I purchased my house after it remained unsold after an auction. This could be a good way to avoid the auction scrum and make sure you are buying at a sensible price. Personally, I couldn't be happier Quote Link to comment Share on other sites More sharing options...
GregG Posted January 31, 2009 Share Posted January 31, 2009 I'm really thinking to buy my next house from auction. I bought a five bedroom Victorian SD in Gillingham for £62,000 at auction back in 1999. Sold it 2002 for 172k after 30k of work done to it. It re-sold in 2007 for 273,000 and now stands empty (possibly repossesed). Auctions are very good if you are flexible about where you live. If you have kids in school and want to remain in a certain area then there are next to useless. I'd only consider an auction again (due to personal circumstances) if it was a complete bloodbath out there and privately sold houses weren't being listed. Then the cost saving might justify moving kids to new schools. Quote Link to comment Share on other sites More sharing options...
happy_renting Posted January 31, 2009 Share Posted January 31, 2009 I purchased my house after it remained unsold after an auction. This could be a good way to avoid the auction scrum and make sure you are buying at a sensible price. Personally, I couldn't be happier Might even be worth going to an auction with the intent of NOT buying at the auction, but seeing what does not sell, and approaching the seller afterwards Quote Link to comment Share on other sites More sharing options...
happy_renting Posted January 31, 2009 Share Posted January 31, 2009 Check the legal pack approx £12, looking out for deeds of covenent, rights of way , flying freeholds as well as obvious structural issues. Is this the same as the HIP nowadays? I presume they are available some period before the auction? Always take a friend to the auction, get them to stand at the back to watch for bids being taken off the wall. If you suspect this, what can you do about it? Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 31, 2009 Author Share Posted January 31, 2009 I bought a five bedroom Victorian SD in Gillingham for £62,000 at auction back in 1999. Sold it 2002 for 172k after 30k of work done to it. It re-sold in 2007 for 273,000 and now stands empty (possibly repossesed). The next move is to buy it again next year and do the same again. Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 31, 2009 Author Share Posted January 31, 2009 If you suspect this, what can you do about it? I've never bought a house at auction, just cars and general stuff. I usually keep schtum if the "wall-bouncing" thing is going on and only bid on things which struggle to leave the starting price. I am an eBay sniper and I would adopt the exact same principles buying a house at auction. If a property wasn't being bid on, and I put in a bid on the second fall of the hammer, and then there was a flurry of activity in the other side of the room (in the auctioneer's mind) then I would suss that straight away. Quote Link to comment Share on other sites More sharing options...
hev Posted January 31, 2009 Share Posted January 31, 2009 Is this the same as the HIP nowadays?I presume they are available some period before the auction? If you suspect this, what can you do about it? Legal packs are available from the auctioneer prior to the auction, you can also look at them for free in the auction room on the day, obviously others will be doing the same and it's not the same as digesting it in your own time or asking for second opinions or legal advice. Get your maqte to stand at the back of the room, he/she can watch the auctioneer and see who is bidding on earlier lots. If it is your lot, get your mate to shout and be prepared to run like hell! Quote Link to comment Share on other sites More sharing options...
tomwatkins Posted January 31, 2009 Share Posted January 31, 2009 The next move is to buy it again next year and do the same again. I speak as an ex-auctioneer and chartered surveyor when I say that taking bids off the wall should be an illegal practice. There is NO ggod reason for keeping it legal. Quote Link to comment Share on other sites More sharing options...
tim123 Posted January 31, 2009 Share Posted January 31, 2009 Is this the same as the HIP nowadays?I presume they are available some period before the auction? If you suspect this, what can you do about it? Stop bidding. The auctioneer wont take bids off the wall above the reserve. If there are no genuine bids it will be unsold and you can pick it up after the auction. The trick is, of course, to notice. tim Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 31, 2009 Author Share Posted January 31, 2009 I speak as an ex-auctioneer and chartered surveyor when I say that taking bids off the wall should be an illegal practice. There is NO ggod reason for keeping it legal. Completely agree. Hopefully, by next year, eBay will have driven both house auctioneers and estate agents out of business. I don't see why I should pay their rent. Quote Link to comment Share on other sites More sharing options...
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