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
- Part 1: Introducing Andy Thompson from SDL Auctions
- Part 2: What Steps Should I Take Before I Buy A Property At Auction?
- Part 3: How Do Property Auctions Work?
- Part 4: What Is A Reserve Price?
- Part 5: What Exactly Is In The Legal Pack?
- Part 6: Are Property Auctions Better For Buyers Or For Sellers?
- Part 7: An Introduction To Buying BMV Property At Auction
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.
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.
If you have any questions or thoughts about property 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.