notthereyet Posted July 16, 2011 Share Posted July 16, 2011 Hi Can anyone fill me in how buying at auction works if you need a Mortgage, Can you still get Mortgages to buy at auction Do you need to get a property valued before auction. do you have to get funds in place before auction. thanks for any advice. Quote Link to comment Share on other sites More sharing options...
Fatmanfilms Posted July 16, 2011 Share Posted July 16, 2011 You exchange contracts the day of the auction. You will need bridging finance arranged, the chances of completing a mortgage in 28 days is slim. Hi Can anyone fill me in how buying at auction works if you need a Mortgage, Can you still get Mortgages to buy at auction Do you need to get a property valued before auction. do you have to get funds in place before auction. thanks for any advice. Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted July 16, 2011 Share Posted July 16, 2011 (edited) Hi Can anyone fill me in how buying at auction works if you need a Mortgage, Can you still get Mortgages to buy at auction Do you need to get a property valued before auction. do you have to get funds in place before auction. thanks for any advice. When you buy at auction you have to pay a non-returnable 10% deposit and then you have (generally) 28 days to come up with the rest of the cash. Ideally you should get a valuation and a full mortgage offer before bidding else you risk your deposit if theres a hitch with the mortgage. However your looking at a minimum of 700 odd quid to get to that stage and of course if you don't win at the auction it will be wasted. You can generally also strike deals with the auction house either before or after the auction (if say the reserve wasnt met) but even here they will generally want to operate under auction rules with respect to the deposit etc. Also worth noting that a lot of properties in an auction wont qualify for a bog standard residential mortguage (which is why there going to an auction ...) because perhaps theyve had some commercial use or have been altered or are defective in some way. Edited July 16, 2011 by goldbug9999 Quote Link to comment Share on other sites More sharing options...
OnionTerror Posted July 16, 2011 Share Posted July 16, 2011 ...I take they will also need a surveyors report before releasing the dosh? Quote Link to comment Share on other sites More sharing options...
SarahBell Posted July 16, 2011 Share Posted July 16, 2011 (edited) ...I take they will also need a surveyors report before releasing the dosh? But you could do this before the auction Organise survey and solicitor who specialises in auction stuff so he's quick. Get solicitor to read legal pack before you commit any money to survey. view it twice - once with someone who can spot a donkey at 40 paces. Speak to mortgage company too and see if they are happy to do auction properties. Edited July 17, 2011 by SarahBell Quote Link to comment Share on other sites More sharing options...
tim123 Posted July 17, 2011 Share Posted July 17, 2011 Hi Can anyone fill me in how buying at auction works if you need a Mortgage, Can you still get Mortgages to buy at auction Do you need to get a property valued before auction. do you have to get funds in place before auction. thanks for any advice. It's difficult to arrange, but (assuming the house is habitable) not impossible Quote Link to comment Share on other sites More sharing options...
Mrs Bear Posted July 17, 2011 Share Posted July 17, 2011 Hi Can anyone fill me in how buying at auction works if you need a Mortgage, Can you still get Mortgages to buy at auction Do you need to get a property valued before auction. do you have to get funds in place before auction. thanks for any advice. You should get your mortgage agreed in principle, i.e. the amount, first. . And make sure you read the legal pack of any property you're interested in, in case of lurking nasties, covenants, rights of way, etc. ,and get a survey done if you're seriously interested. Auction properties are sometimes of non-standard construction (and therefore usually unmortgageable) though they may look perfectly normal from the outside. Things like a 'flying freehold' can be a problem, too. If you see something apparently going very cheaply at auction there's nearly always a reason. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted July 17, 2011 Share Posted July 17, 2011 How Does Buying At Auction Work ? first you need the media to create a buying frenzy with magic money. then you need drones and stooges. the rest is natural human greed. then it goes tits. Quote Link to comment Share on other sites More sharing options...
Number79 Posted July 17, 2011 Share Posted July 17, 2011 But you could do this before the auction Organise survey and solicitor who specialises in auction stuff so he's quick. Get solicitor to read legal pack before you commit any money to survey. view it twice - once with someone who can spot a donkey at 40 paces. Speak to mortgage company too and see if they are happy to do auction properties. The problem for most is that solicitors and surveyors are not free so if you are outbid then you lose what was spent covering your bases. Having already invested time and cash before the auction seems to commit people to paying more than they should to get the place that they are interested in. I think that the prices often look great but there is almost always a reason that something is being flogged at auction, they are mostly donkeys one way or another. Quote Link to comment Share on other sites More sharing options...
awaytogo Posted July 17, 2011 Share Posted July 17, 2011 The problem for most is that solicitors and surveyors are not free so if you are outbid then you lose what was spent covering your bases. Having already invested time and cash before the auction seems to commit people to paying more than they should to get the place that they are interested in. I think that the prices often look great but there is almost always a reason that something is being flogged at auction, they are mostly donkeys one way or another. Thanks everyone for the info Quote Link to comment Share on other sites More sharing options...
Milton Posted July 17, 2011 Share Posted July 17, 2011 Thanks everyone for the info Beware the Auctioneer. Often they will 'phantom' bid against newbies. This means, they will pretend to see a bidder in the audience, and raise the bid against you, to get you to increase your bid. This is perfectly Legal. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 17, 2011 Share Posted July 17, 2011 Beware the Auctioneer. Often they will 'phantom' bid against newbies. This means, they will pretend to see a bidder in the audience, and raise the bid against you, to get you to increase your bid. This is perfectly Legal. A bit risky isn't it what happens if you don't increase your bid and the phantom bidder wins? Quote Link to comment Share on other sites More sharing options...
Guest tbatst2000 Posted July 17, 2011 Share Posted July 17, 2011 A bit risky isn't it what happens if you don't increase your bid and the phantom bidder wins? I presume they'd only do it up to the reserve price... Quote Link to comment Share on other sites More sharing options...
hedgefunded Posted July 17, 2011 Share Posted July 17, 2011 I presume they'd only do it up to the reserve price... I think they'll act upon seller's instructions and at their own discretion too. It's their job to try and achieve the highest possible price and if they sniff a seller who is clearly very eager, they act accordingly. It's called taking bids 'off the wall'. Quote Link to comment Share on other sites More sharing options...
miko Posted July 17, 2011 Share Posted July 17, 2011 A bit risky isn't it what happens if you don't increase your bid and the phantom bidder wins? Have seen this happen the house was back in the next auction by the same company a few months later. Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted July 17, 2011 Share Posted July 17, 2011 (edited) I presume they'd only do it up to the reserve price... I dont see any point in bidding until the reserve price has been met. If the reserve isnt met you can haggle with the auctioneer afterwards and probably get a better price than if you had bid it up. The auctioneer will indicate when the reserve is met by using phrases like "against the owner" "being sold today" "definitely going/selling now" until such times you can assume its still under reserve. Infact you could wait until he gets into the "going once ..." malarkey before you bid at all because the hammer on goes down on actually sales. Edited July 17, 2011 by goldbug9999 Quote Link to comment Share on other sites More sharing options...
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