Buying at Auction - Cheap Mortgage Deals

There are approximately 200 or so auction houses in the UK selling around 30,000 properties worth in excess of £2.5 billion annually. It used to be the place to buy repossessed properties and therefore, buying at auction was the traditional way for developers to get good deals on unwanted properties. The unattractive squats and derelict homes also found their way into auctions.

Nowadays, more people are buying from auction houses then ever before, in fact in 2004 there was a 20% rise in the number of properties available.

The emergence of interest in all types of auctions covered by television shows has helped this trend catch on. The sluggish house market of late has also helped people to achieve a quick sale.

Auctioneers catalogues are usually available three weeks before the sale and provide the details of dates and times for property viewings. If you are interested in a property this is the best time to get a survey completed on the property and to ask your surveyor to advise you of the most you should bid for the property.

The details of the property could change and these will often be made clear on the day of the auction.

The property will have a reserve price (not usually disclosed) and the auctioneer will gear the audience to at least bid above that. If the price is not reached and the property is removed from the sale, it is worth registering your interest with the auctioneer as you may find that your bid will be accepted later in a private deal.

If your bid is accepted you will usually need to pay 10% deposit on the day and sign the contract in the saleroom. Check methods of payment before hand. Take proof of identity such as a passport with you.

Once you have signed the contract you are legally bound to pay the remaining 90% of the price and complete within or around 28 days. You could lose your deposit if you fail to pay at worst you could be sued for any losses made by the seller. There are auctioneers fees to pay and you will need to insure the property from the moment you sign the contract.