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Buying at auction


Mole

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Looking at a couple of cottages locally that go under the hammer next week..

Has anyone experienced buying at auction..

Any good or bad things to watch out for?

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Check the legal pack, to see if you have to pay sellers costs or any conditions/planning that council have in place that ultimately cost u more, work out renovation costs to work out your max bid, as u make your money when buying cheaper, don't be keen to get bids in wait till the going once, going twice then bid obviously if it's not gone over your max bid, as otherwise just run the bids up which you don't want, good luck :)

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As above, read legal pack,  there can be some odd covenants such as paying a proportion of any profit made on the house to the original or any previous title holder,  no rebuilding of the house larger than it is.  It’s not just the planning authorities that can tell you what you can do to the property so read every word. 

View the house inside and out. Take a builder or surveyor with you for a ball park figure regarding any work that you need for repairs/improvements.

Make sure your funds are in place when the hammer falls.

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3 minutes ago, SootySport said:

As above, read legal pack,  there can be some odd covenants such as paying a proportion of any profit made on the house to the original or any previous title holder,  no rebuilding of the house larger than it is.  

My neighbour just bought a house (auction) from one of the large Derbyshire Estates famed for its flower show which had that covenant, I’d not heard of it before.

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Thanks for that..the legal pack has just come out..7 days before the auction.. so will have a good look through and see what is there.. have had one visit and will go again this weekend when they have half hour open day.. busy doing the numbers now!

Thanks again

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Bear in mind that on the fall of the hammer there is an instant binding legal contract. You will have to pay a 10% deposit there and then, usually to the seller's solicitor, or sometimes to the auctioneer, so you need cleared funds in an account that you can access straight away. The contract terms and conditions will form part of the document pack and will incorporate a fixed completion date, when you will need to have the balance of your funds available. Usually that is 4 weeks after the auction date, but may be different.

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Just back from the auction..really interesting day but unfortunately the houses went for more than I wanted to pay..

many of the lots did not sell..so e even made guide price and still below reserve..which to me seems a bit underhand... One had guide 130 to 150k and went for 208k

but was happy with the experience and now looking for new opportunities

 

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