We have prepared this advice guide to help you through the process of buying a property at an auction. It is important that you are aware of the following important steps prior to attending an auction. This will help you to become well prepared and not open yourself to any surprises you may discover later on which may cause you unexpected problems.
It’s easy, just follow these simple steps:
1) Before you attend the auction
- Try and get a feel of what an auction is like and attend one where you are not intending to buy a property but try and use the experience to get a better understanding of the process.
- Arrange and carefully check the property you are interested in before you go to the auction and make a bid. It is important that you check the property against the description and make sure everything is as accurate as possible and can be matched up easily.
- Ensure that you have made the necessary financial arrangements so that you are able to complete on any property(ies) you plan to bid on.
- Instruct your Solicitor to make all of the necessary enquiries into the property.
- Determine what you are willing to pay for the property depending on your own financial situation and do not bid over this.
2) Auction Day
- Try your best to arrive early-it will help to relax you before the bid starts and ensure you are settled.
- Make sure you bring your ID with you and make sure arrangements are in place for you to transfer the deposit should your bid be successful.
- Keep focused and try not to change your tactics. It could lead to undesired consequences.
3) Post auction
- Contact your broker so that they can start your application as soon as possible as you only have 28 days to complete!
- A Solicitor must be instructed to complete the transaction
- You will need to provide a list of required information and documents from your broker and Solicitor. This is done to try and speeden up the process and to avoid delays later on
Following your successful bid you will have to pay a non-refundable deposit of 10% of the property price up front and the remaining 90% will have to be paid within the 28-day period. Failure to pay this will mean that you could forfeit your deposit.
We, at Finbud are here to help you through this and can ensure that the process is as stress free and as smooth as possible