PROPERTY AUCTIONS

[sam1967]

does anyone know anything about property auctions ?

does the property have to be paid for cash or can you get a mortgage
on it ?
what is the minimum deposit required ?

 

[Pet Lover]

does anyone know anything about property auctions ?

does the property have to be paid for cash or can you get a mortgage
on it ?
what is the minimum deposit required ?

I bought a property at auction about 15 years ago so things may have changed
but yes you can get a mortgage on an auction property, but it all has to be
arranged in advance of the auction. Once the hammer drops you are committed
to buying, and buying quickly - about 7 days you have to pay up as I recall.
So if you haven't got a mortgage sorted you will be well stuffed. If you
can't pay for the property then the owner can put the property back up for
auction and you are legally obliged to cover any losses he makes including
the auction fees, solicitors fees etc. You can get good bargains at
auctions but it's not for the faint hearted. Auction houses produce legal
packs for each property - ask for the one for the house you are interested
in.

 

[sam1967]

I bought a property at auction about 15 years ago so things may have changed
but yes you can get a mortgage on an auction property, but it all has to be
arranged in advance of the auction. Once the hammer drops you are committed
to buying, and buying quickly - about 7 days you have to pay up as I recall.
So if you haven't got a mortgage sorted you will be well stuffed. If you
can't pay for the property then the owner can put the property back up for
auction and you are legally obliged to cover any losses he makes including
the auction fees, solicitors fees etc. You can get good bargains at
auctions but it's not for the faint hearted. Auction houses produce legal
packs for each property - ask for the one for the house you are interested
in.

not interested in any yet but may be in a few years time when negative
equity and repossessions start to kick in with a vengeance.
i imagine you can get better bargains when the house market is falling
as it will be in a few years time.

 

[dp]

Once the hammer drops you are committed

to buying, and buying quickly - about 7 days you have to pay up as I

recall.

10% deposit on the day paid by cheque and the balance 28 days later is, I
believe, more normal today (the last 2 I went to did things this way, but it
varies between auctioneers). You do not need to have the finance in place
before the auction, beyond the deposit, but you have to be confident that it
will be there within 28 days so talk to a few building societies in advance.
At one auction there was a mortgage adviser on hand to sell their products
on the day (it's better to shop around of course). If you fail to pay up,
the deposit will be lost and you will be liable for any losses the seller
suffers.

Most auctioneers will be wary about accepting cash.

 

[sam1967]

recall.

10% deposit on the day paid by cheque and the balance 28 days later is, I
believe, more normal today (the last 2 I went to did things this way, but it
varies between auctioneers). You do not need to have the finance in place
before the auction, beyond the deposit, but you have to be confident that it
will be there within 28 days so talk to a few building societies in advance.
At one auction there was a mortgage adviser on hand to sell their products
on the day (it's better to shop around of course). If you fail to pay up,
the deposit will be lost and you will be liable for any losses the seller
suffers.

Most auctioneers will be wary about accepting cash.

how much cheaper than market prices do the properties usually go for ?

 

[Daytona]

how much cheaper than market prices do the properties usually go for ?

-10% at the moment I believe since so many people a flooding auctions
rooms because they know they can get a bargain.

Try this
<URL:http://boards.fool.co.uk/Message.asp?mid=7606972&sort=whole#7607296>
- Online auction house links

Daytona

 

[dp]

It's difficult to compare prices. A typical auction property might be in a
condition or a location that an average buyer would not accept. In spite of
this, prices are occasionally higher than the rest of the market. Typically
though, if you know enough to be able to bring a tatty property up to a
saleable standard without, for example, paying £30 per hour for someone to
tile the bathroom, you can make money. If you don't know enough, the guy
tiling the bathroom will be the only one who makes money.

Some auction properties are in places where all neighbouring properties are
derelict or boarded up. If you buy one of these, however much time and money
you spend on your property, noone will want to pay to live there.

 

[John Bishop]

not interested in any yet but may be in a few years time when negative
equity and repossessions start to kick in with a vengeance.
i imagine you can get better bargains when the house market is falling
as it will be in a few years time.

I wouldn't hold your breath for negative equity. The last time this happened
was as a direct result of a very specific set of circumstances overheating
the market and then huge interest rate rises killing it off. There is still
more demand than availability, and all that will happen is a slowing of
growth to more normal levels. Best hope you have is that demand slows and
you get desperate sellers.

With regard to auctions, the previous post is right. Auction houses require
you to present a bankers draft for 10% at time of sale. They do not accept
cash or credit cards. Balance due within 7 days. You get access to
properties beforehand, and it's up to you to arrange funding, mortgage, etc.
before buying.

John

 

[sam1967]

I wouldn't hold your breath for negative equity. The last time this happened
was as a direct result of a very specific set of circumstances overheating
the market and then huge interest rate rises killing it off. There is still
more demand than availability, and all that will happen is a slowing of
growth to more normal levels. Best hope you have is that demand slows and
you get desperate sellers.

sorry but i am 100 % convinced there will be a massive slump with
prices starting to fall between q1 2005 and q2 2005.
i am more than 100% convinced of this.
i want to be ready in a few years time to get some bargains.

 

[tim]

With regard to auctions, the previous post is right. Auction houses require
you to present a bankers draft for 10% at time of sale.

How can I provide a bankers draft, presumably already written by
my bank for an amount un-known at the time I request it?

tim

 

[tim]

On Fri, 2 Jul 2004 10:15:39 +0100, "John Bishop"

sorry but i am 100 % convinced there will be a massive slump with
prices starting to fall between q1 2005 and q2 2005.
i am more than 100% convinced of this.
i want to be ready in a few years time to get some bargains.

If you want a house to live in you will get one bargin.
But as the market will have dropped and you will only
be able to sell on at the price you paid how will you
get several? (And don't say to rent out, because I am
100% convinced the slump will be caused by all the new
BTL properties that are now coming to completion
being sold in ahurry by their buyers when they find
there are no prospective tenants for them)

tim

 

[curiosity]

so is having the lead singer of hermans hermits living in a neighbourhood a
good thing or a bad thing then??

if he's still singing it could put people off.

 

[r.bartlett]

Some auction properties are in places where all neighbouring properties are
derelict or boarded up. If you buy one of these, however much time and money
you spend on your property, noone will want to pay to live there.

so is having the lead singer of hermans hermits living in a neighbourhood a
good thing or a bad thing then??

cheers

richard

 

[sam1967]

If you want a house to live in you will get one bargin.
But as the market will have dropped and you will only
be able to sell on at the price you paid how will you
get several? (And don't say to rent out, because I am
100% convinced the slump will be caused by all the new
BTL properties that are now coming to completion
being sold in ahurry by their buyers when they find
there are no prospective tenants for them)

tim

ok. a bargain. if im very lucky.