Buying a house at auction can be a very exciting way of making a property ทาวน์เฮ้าส์มือสอง ราคาถูก purchase.
Whether it's your first house purchase, second, or a business proposition, buying at auction can be a fast, straightforward way of progressing up the property ladder. There are no ongoing chains, the process is usually completed within 28 days and bargains can be found.
It is generally accepted that the price you will pay for an auction property will be less than that of a similar property being offered for sale by conventional methods such as estate agents. So there are bargains to be found, but there are reasons why properties are entered in to auctions.
The property may be a repossessed house or flat, or it could be in a state of disrepair, including, fire or flood damaged. The property could be a bereavement sale, or an ex-rental house.
So, what should you consider before buying from a property auction?
Firstly you need to find out when and where an auction will take place. You can do this by making contact with auction houses, estate agents and by searching on-line. Local property papers and magazines could be another source.
Making contact with agents and auctioneers prior to auctions and registering your interest will ensure that you receive an auction catalogue as soon as they are available. At the same time, general enquiries should be made regarding raising finance for the purchase.
Some auction properties will not be suitable for a mortgage. For instance, if the house does not have a bathroom or kitchen installed, a lender will not entertain giving you a mortgage. Non standard construction or subsidence, or having a short lease, are also reasons for a mortgage being refused. These are not the only reasons why a mortgage could be refused, so do ensure you take advice.
If you can't get a mortgage, other alternatives may be available such as bridging loans, private investment or specialised loan companies may be able to help.
Once a property of interest is identified, you will need to attend a viewing. These are usually held twice a week and take the form of group viewings. Depending on your level of experience in identifying building defects, it might be advisable to take a builder or surveyor with you.
Having completed the viewing, you should now research the area and establish the ceiling price of similar properties. You should also have a reasonable idea of how much it will cost to repair or refurbish the property if that is necessary. If the cost of repair etc is deducted from the ceiling price of similar properties in the area, then that should be your maximum bid.
Having established that this property is a viable proposition, the next step is to check the legal pack that the auctioneers will provide. This will identify if there are any conditions or covenants that may affect the purchase or the use of the property once purchased. Again, if you are unsure, ask a solicitor to check it over and give you a report. Some covenants may prevent, for instance, a purchaser letting a property or insist that the property can't be re-sold for a set period of time.
Moving now to financing the purchase and refurbishment, as previously mentioned, general enquiries should have already been made. The importance of this and having your finance in place and agreed, cannot be over stated.
On the day of the auction, you should attend and you will register as a bidder. By registering, you are agreeing to the auction house's terms and conditions. It is your responsibility to ensure you understand what those terms are.
If you bid and your final bid is accepted, you will be required to put 10% down as a deposit immediately. The balance will be required within 28 days but could be within 7 days. You will only know what the conditions of purchase are if you read the legal pack. If you fail to provide the balance on time, there are penalties which will apply and possibly you could lose your deposit and may then be the subject of legal action.
Please also remember that auction houses apply fees to the purchase price and these should be established prior to auction day.
Another very important point to remember is to know your limit when bidding. Don't get caught up in a bidding war, that may mean that you pay more for the property than intended.
In summary, research the property and area, have all the surveys done and get your finance in place, know your limit and don't go above it.
Happy Bidding.
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