How Do I Prepare For A Day At House Auction?

How Do I Prepare For A Day At House Auction?

On the day of the house auction, you will need to bring your debit card or chequebook, two forms of ID and the contact details for your solicitor. Because there are legally set deadlines when you are buying property through an auction house everything happens a lot faster than if you buy through an estate agent.

Property Expert Series: Andy Thompson From SDL Auctions

What To Bring To A House Auction

Amy: If I was coming down to a house auction, either to buy or to sell, is there anything I need to bring with me? How should I prepare for the day?

Andy: Preparation is absolutely key. On the actual day of the auction, you are going to be buying the property, there and then.

You will need the money to pay the deposit (usually around ten percent) and cover any auctioneer’s fees. So, you’ll need your chequebook or debit card.

You will also need two forms of ID. So, something with your photograph on such as a passport or a driving licence and a recent utility bill.

And you will also need your solicitor’s details because that will probably form part of the contract.

Communication is key. Each auctioneer will have their own quirks and will do things slightly differently.

Buying a house is a big investment and once the hammer falls there is no turning back. So, make sure you talk to the auctioneer and run through the process with them, on an individual basis, because their methods can vary, slightly.

What Happens After The Hammer Comes Down

Amy: Wonderful. And can you tell me what happens, once that hammer comes down? I’ve made my bid, what happens next?

Andy: So that’s it, you’ve exchanged contracts. For good or ill, you can’t back out. The seller can’t back out. When the hammer falls, it’s a done deal.

The best case scenario is that you have done all your homework, your research and you’ve bought the house you want, hopefully for a little bit less than the maximum bid you were prepared to put in.

Then, before you get the keys there is a legal process to complete.

So after the hammer has fallen, you will have (usually) twenty-eight days from that point to complete. This is where the two solicitors liaise to cross the Ts and dot the Is.

Why Buying A House At Auction Is Faster Than Buying Through An Estate Agent

Amy: It sounds to me that even though there’s quite a lot of due diligence and research that needs to be done, everything seems to happen very quickly. This is an efficient way of buying property.

I know when I bought my house it took a lot longer than twenty-eight days. So buying at auction must be very attractive for people who are wanting to get things moving fast.

Andy: And, do you know what I always say? If you have take a property, No. 1, Smith’s Street, for example. Let’s say you are selling it, using local estate agent but then change your mind that and go with a local auctioneer.

The property is exactly the same. It’s still No. 1, Smith’s Street. It’s still a three bedroom semi-detached or whatever it might be.

So, for a buyer, the research process is basically the same. They’re researching the same property whatever the sales channel may be.

I think a lot the reason that properties, sold with an estate agent, takes so much longer, is just because the people involved are not working to a deadline.

If a deadline is set then people work to it.

So, the buyer is buying exactly the same property but it will take three months with an estate agent but one month with an auction.

It’s as simple as just setting the terms. If you are paying a thousand pounds in fees to a solicitor, you could set terms that state that completion needs to happen within twenty-eight days.

In truth, I sometimes sell properties in two days. Normally this would when I’m dealing with very experienced investors.

But there is actually no reason that any property – or ninety-nine out of a hundred properties – couldn’t be completed within the twenty-eight-day term that you get with house auctions.

Join Our FREE Property Training Course Today

Sign up for our free online property training course today.

In there we cover a range of different property strategies to help you get started on building a long-term property portfolio or creating a cash flowing property business.

We also look at ways to increase your return on investment with any of the properties you may be considering and we also have a couple of cheat sheets and downloadable documents in there as well.

Just click the image below to join our free training course today.

Any Questions?

If you have any questions or thoughts about house auctions then leave them in the comments section below.

Alternatively, you can get in touch via our Facebook page.

We’d love to hear from you and as always we’re happy to help.

Related Posts:

Are Auction Properties More Commonly Vacant Or Tenanted? Auction properties come in all shapes and sizes. They can be tenanted or vacant and you need to do your research to avoid any nasty surprises. For an investment property having a tenant in place can b...
Introducing Andy Thompson from SDL Auctions The first in a new series on property auctions with Andy Thompson From SDL Auctions. Auctions can be fantastic places to secure BMV deals but for the newcomer, they can be very daunting places. The tr...
What Steps Should I Take Before I Buy A Property At Auction? Before you buy a house at auction you will need to do your due diligence. This means you need to have seen the house you want to buy (preferably more than once) and you will need to understand what is...
How Do Property Auctions Work? The process of buying a house at a property auction has three distinct phases. Firstly there is the preparation period after the catalogue has come out. Second is the day of the auction, itself. And, ...
Property Auctions | What Is A Reserve Price? In a property auction, there is a guide price and a reserve price. A guide price is what a buyer will see in the auction catalogue and is a guide to the value of the sale. The reserve price, on the ot...

Leave a Reply