Auctions 'Could Be A Good Option For House Buyers'

People considering taking out a mortgage to buy a house may want to consider attending property auctions, according to Savills. A spokesperson has said the majority of the buying public is probably unaware of many sales where new homes were going under the hammer. However, he stated it may well be something people should research.

"If they are confident at buying at auction then it is something they should consider," he concluded.

Buying auctions property is a rather different proposition to buying in the usual 'by private treaty' method. Once the hammer comes down, that's it: the deal is done and there's no backing out. You will be asked to sign a contract there and then, pay a ten per cent deposit and complete within 28 days of signing.

You’ll need to get your act together and collect all of the relevant information on the auction properties you hope to bid for. Local searches, a survey, and finance will all need to be sorted out in advance, so if you have a property in mind instruct your surveyor and solicitor and consult with your lender. You will also need to be clear about how high you are willing to go and fix a price limit which will not be exceeded. Only then can you think about turning up to bid.

Information on the properties is provided by the auction houses, who produce a catalogue 3-4 weeks before the property auction with price guides and details of what's about to come under the hammer. Then you must then arrange to view the property and have a survey done. Many auction properties are unmodernised or will need refurbishment so it's a good idea to get a professional to cast a skilled eye over prospective purchases.

Bidding can be a nerve-racking process so it can be a good idea to attend a couple of auctions and see how it's done. Expect anything from 200-600 people to show up. You can ask someone else such as your solicitor to bid for your or you can bid over the phone or sometimes online.

If you would like to know more about property auctions why not ask AnswerBank Home and Garden.

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