Buying at Auction


The majority of people will believe that buying at auction is extremely risky and you need to be a cash buyer – NOT TRUE. In our experience over two thirds of properties bought at auction are done so with some form of finance in place - typically a mortgage or bridging loan. It isn’t as scary as many believe it to be and as long as you are organised and follow the advice of the professionals around you, it can be a great way of securing a property and reducing the possibility of a seller withdrawing from a sale. The steps below should help when considering buying at auction:
Find A Propetry

Find a Property

  • Once you have found a property you are interested in, contact My Auction or the local estate agent to arrange a viewing
  • There will be between 4 and 8 open house viewings for each auction lot before the auction date
  • Speak with My Auction about the buying process and read ‘How to Bid’ on www.my-auction.co.uk
Legal Pack

Legal Pack

  • Once you have viewed, ask for a copy of the legal pack to be sent to you
  • This is prepared by the seller’s solicitors and will contain everything a buyer should need to see prior to making a decision about bidding (this can be downloaded for free)
  • Pass this legal pack to your own solicitors so that they can review and advise you
Finance

Finance

  • If, once you have viewed the property and read the legal pack, you are still interested in bidding, begin arranging finance for the property
  • The reserve price will never be more than 10% above the starting price so you could use this as a guide for your broker and if you’re planning on bidding, arrange a survey prior to the auction date
  • If you’re happy with all of the above, you would then register to bid with My Auction via the Auction Passport system
Bidding

Bidding

  • You would register to bid with My Auction and comply with all Anti-Money Laundering Regulations before being allowed to place a bid
  • My Auction would be in contact with you on the auction day to make sure you have no outstanding queries or concerns about the property
  • You need to be in a position to pay a 5% non-refundable deposit (minimum of £5,000) if you are the winning bidder, plus the buyer’s premium of 1%+VAT (£2,000+VAT minimum)
  • If you bid and are not successful, there is no charge to you
Winning Bidder!

Winning Bidder

  • If you are the winning bidder, contracts will exchange immediately on the fall of the digital gavel
  • At this stage you will be asked to pay a 5% deposit of the purchase price with the remaining 95% payable on completion (typically 28 days after the auction date)
  • You will also pay the buyer’s premium of 1%+VAT (subject to a £2,000+VAT minimum))
  • You will also be responsible for insuring the property from this point onwards
  • On completion, collect the keys from the local estate agent