Buying at Auction

You will find property auctions advertised in your local and national press. Buying a house at auction could produce a real deal but many of the properties that come up for auction are in such poor condition that you'll need to spend tens of thousands of pounds to bring them up to habitable standard

That's not to say that bargain-hunters won't win by buying a home at auction. It's possible, but only if you observe as much as you can about the property before making your bid.

Auctioneers will be able to give you details of properties, which are imminent for auction. They will also be able to give you a guide price – how much they think the property will sell for.

Attending an auction before you're ready to bid is a good idea - you'll get an idea of how things work and a feel for the kind of properties, which are offered. Some people just aren't prepared for buying at auction and getting the property you want at the price you want it is a skill in itself. But don't worry about buying the wrong property by accident - sneezing, winking or scratching your head won't mean that you've unknowingly made a bid.

If your bid is accepted for a property it will be assumed that you are happy with its condition. You will have to put down 10 per cent of the price of the property as a deposit there and then and, if you subsequently discover faults or problems, you'll have no way out. Effectively the properties are sold as seen.

For this reason there are steps you need to take before making your bid - seeing a property obviously isn't enough. Before bidding you should get a full structural survey carried out and employ a solicitor to undertake all the necessary searches on any property you're interested in. If you are not entirely happy with the condition of the property, or are concerned about any of the legal aspects, think before making a bid. Of course you also need to have the finance in place before going to auction, giving you the additional advantage of knowing accurately what your bidding limits are.

But you don't have to leave it to chance. Spotting a property early could mean that you get in first and seize a bargain before the auction has even been held. You can make an offer beforehand. If you contact the auctioneers, they will pass your offer on to the vendor and if it is a rational offer, it may be accepted. Another benefit of buying at auction is that you can't be overcharged. Once your bid has been accepted, the property is yours and it's too late for someone else to come in with a higher bid. You put down your 10 per cent deposit at the auction, and then, only 28 days after buying, you should be able to move in.

 

Moving Checklist

Buying property is supposed to be one of the most taxing events of our lives - and certainly many of you will have uttered the words "never again" following your move. Although arranging the mortgage and finding the property can be taxing, many people find the actual build-up to moving-out day and the day itself to be the worst.

But it needn't be like this and, if this is your first move, don't let it discourage you buying or moving up the property ladder. Follow our step-by-step guides and hopefully you will have a trouble-free move - one you won't remember with dread when you come to do it again.

 

Arranging the move

• If you decide to move yourself, scrutinize the costs involved. It is likely that numerous trips will have to be made between the two properties. Where long distances and several journeys are concerned it may be worth hiring the professionals.
• If you hire a firm of removers you will most likely have a choice of options available to you. For instance some companies will pack all of your possessions for you as part of the service, or an additional service, whereas others may just load and unload the van.
• If you do use a removal firm, check the contract to be clear on exactly what the firm will do and what happens if any of your goods get damaged during the move. Also check with your home contents insurer to make sure you are covered - you may need to take out a one-off policy to insure your possessions during the move.
• If you are moving from a large city to a smaller area, it may be worthwhile hiring the removers from the place you are moving to as they could well be cheaper.
• If no one can suggest a particular removal firm to you, it is best to use one that is a member of the British Association of Removers.

 

Things to do

• Book the removal firm if you're using one (give at least two weeks notice)
• Hire removal boxes or tea chests for packing if they are not supplied by the removal firm
• Start packing things you won't immediately need
• Arrange for the final reading of gas/electricity/water (give 48 hours notice). Arrange for readings to be taken at your new property to make sure you are charged for power/water from the date you move in not from, say, the previous month
• Arrange for your final telephone bill, and arrange for a telephone connection at your new home - see if you can transfer your existing number over to your new home
• Arrange for the professional disconnection of gas cookers and any other appliances that you are taking with you (give seven days notice)
• Cancel deliveries of paper, milk, and so on and pay off your accounts
• Cancel standing orders or direct debits from your bank account in favour of your existing house (mortgage, gas, electricity payments) and complete fresh ones for your new house
• Defrost the fridge/freezer. If moving with a freezer filled with food, turn it up to maximum for a few days before the move