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, third is the completion period after which the property and the keys are yours.
Property Expert Series: Andy Thompson From SDL Auctions
- Introducing Andy Thompson from SDL Auctions
- What Steps Should I Take Before I Buy A Property At Auction?
- How Do Property Auctions Work?
- What Is A Reserve Price?
- What Exactly Is In The Legal Pack?
- What Is Off The Wall Bidding?
- Property Auctions – Does It Matter Where I Sit?
- Auctions Fees | What Are The Costs To Buyers And Sellers?
- How Do I Prepare For A Day At House Auction?
- Are Auction Properties More Commonly Vacant Or Tenanted?
- What Are The Risks When Buying A Property At Auction?
- How to Find and Work With Good Property Auction Houses
Amy: How does a property auction actually work, beginning to end? What’s the process?
Andy: So, usually, the catalogue will come out about three weeks before the auction. So, that’s your due diligence period. That’s the crucial bit. That is when you need to do all of your homework and make sure you know what you are buying.
The Day Of Auction
Andy: Then the auction day itself is where, obviously, you’ll go against whoever else and bid. When that gavel falls… the fall of the hammer represents a legally binding exchange of contracts.
So from that point, there is no turning back, good or bad – for you or for the seller as well.
The Completion Period
Andy: So, usually, you’ve then got a completion period of about 28 days but it’s crucial to check the legal pack – that timeframe can be shorter, sometimes it’s longer. The average timeframe is, however, 28 days.
So, again, it’s important to have everything in place – your finances in place, a solicitor lined up – so that the 28 days period is a smooth process. And then, if everything goes to plan, at the end of that 28 days you’ve got your keys and the property’s yours.
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