HOW TO BUY AT AUC­TION

Yorkshire Post - Property - - PROPERTY -

Buy­ing tips: Lo­cal auc­tion houses will of­fer ad­vice. Buy­ing at auc­tion is the same in le­gal terms as buy­ing through pri­vate treaty, but the process is dif­fer­ent. The first step is to ob­tain a cat­a­logue, avail­able four weeks be­fore auc­tion. You can request a prop­erty’s le­gal in­for­ma­tion pack, which con­tains searches, but not a val­u­a­tion or sur­vey. It is wise to have a sur­vey.

You must have all fi­nances ready on the day of auc­tion and pay a 10 per cent de­posit im­me­di­ately, fol­lowed by the bal­ance 20-28 days later. Once the ham­mer falls, you are legally obliged to com­plete the sale. and money was flow­ing, you dis­counted auc­tion prop­erty by 20 per cent. Now it’s 30 to 40 per cent less and some­times even 50 per cent if it is in a dif­fi­cult area,” says Tony.

“You are ask­ing buy­ers to com­mit in a very short time scale, usu­ally four weeks from the cat­a­logue be­ing out to the ac­tual sale. There has to be an in­cen­tive.”

The make-up of the sales rooms has changed since the credit crunch. An­drew Win­ter, head of Blun­dells Auc­tion House in Sh­effield, says that al­though most buy­ers tend to be ex­pe­ri­enced in­vestors, he is start­ing to see more of the “one-off” bid­der and first-time buy­ers, who are be­ing funded by the bank of mum and dad.

Tony Web­ber adds: “It has changed in the last three or four years now the banks are not lend­ing freely.

“Prop­erty in­vestors who can’t get mort­gages from the banks are us­ing their own money to buy and they are look­ing at one-bed­room prop­er­ties to let be­cause there seems to be a big rental de­mand for those. ”

Tony agrees that now is a good time to buy if you have the cash.

“When banks start lend­ing again there will then be a big de­mand to buy from all those first-time buy­ers who can’t get on the prop­erty lad­der at the moment.”

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