If you are looking to buy a house quickly, easily and with no chain, buying at auction could be a great option for you. Whether you are a property investor, developer or a private buyer, as soon as the hammer falls, the house is yours. With 40 SDL Auctions being held in 6 different locations across the UK in 2018, buying a house at auction has never been easier. But, make sure you do your research before hand and don’t just turn up to an auction with no knowledge of what you’re bidding on.
Firstly, get hold of one of our SDL Auctions catalogues and have a good look through to see what houses you are interested in. When you find a house that you like, you can book a viewing by visiting our website or calling one of our SDL Auctions offices. It is important to view the property before you bid, so that you are certain it is the right house for you and you are aware of the exact condition and state of the property. Most houses for sale at auction are ideal if you’re looking for a renovation or redevelopment project. So, viewing the property before bidding is ideal, so that you know exactly what costs will be required for any development work needed.
When a house is for sale by auction, there will be a legal pack available online, which will provide you with all the property information. You will need to read this thoroughly and if you are not sure about anything, go through it with your solicitor and make sure everything is okay before you bid.
You will also need to set your budget before attending the auction and be able to put down a 10% deposit on the auction day. Houses for sale by auction will be advertised with a guide price, which is based on the vendors reserve price. The reserve price must be within 10% above or below the guide price and will not be disclosed. Organising your financial arrangements prior to the auction day is important, as you will need to settle the remaining 90% balance within 28 or 56 days, depending on your method of sale.
When the auction day arrives, make sure you come prepared. When you arrive at your chosen auction, you will need to register to bid – make sure you bring two forms of ID with you and enough funds for your deposit and fees. When it’s time to bid on the desired house for sale, make sure that you can clearly be seen by the auctioneer and that he is aware you’re bidding. As the bidding begins to increase, try not to get too carried away and try to have a maximum figure in your head that you are willing to bid. Once the final bid on the house for sale has been accepted, the auctioneer will indicate that it is about to be acknowledged and will then drop the hammer to close the sale.
If the house for sale fails to reach the reserve price it will be withdrawn from the auction and if you are still interested in buying the house, you will be invited to speak to us afterwards, as offers can still be made post-auction.
Auctions are a great way to buy a house competitively with the main attraction being avoiding chains, back outs and complications. When the hammer falls, you exchange contracts and get the keys a month later. When buying a house at auction, the timescale of the sale is condensed down significantly to a matter of days rather than several months, offering you the certainty and security of buying a house, quickly and simply.
“Your firm’s professional approach was outstanding and I was amazed at the amount of technology that you use on the day. The screens and bidding information are clearly a great benefit to everyone in the room. You have an excellent team, who all worked so very hard during the sale.” – Mr W
For more information about attending an auction see our advice section or contact our team today.