How to Buy a House
Property Auctions
Property Auctions: Buying a first home at an auction can often lead to a good buy - 90 per cent of the cheap property sold in the UK goes via auction. Click here to find some real bargains.
The buying process is completely different from the 'normal' one as when your bid in an auction room is accepted, you are legally committed to the purchase. In effect, that final bid acceptance becomes the 'exchange of contracts' and you cannot pull out of the deal. By the same token, it also, of course, means you cannot be gazumped, nor can the vendor pull out at the last minute.
You must have the finances in place to go ahead with the completion (purchase) in the timescale required, usually 28 days. You must also have any deposit ready on the day of the sale - this might typically be 10 per cent of the purchase price.
To find out how much you can borrow, request mortgage advice . You will need to decide your 'walk away' or ceiling price based on what you think the property is worth to you and what you can afford. Do not go over this amount, no matter how much you are tempted. You must have the finances in place for 'completion'.
To find properties for sale by auction, click here . Alternatively enquire with estate agents, contact local auctioneers or watch the local press. You should visit an auction without bidding first, to get a feel for how the proceedings work, and to ask the auctioneer any questions you might have.
Before you bid, make sure you have carried out all the relevant research. Have a survey done, ask your solicitor to check title deeds and carry out local searches. Make sure you know if there are any special conditions of sale, and view the property thoroughly before placing a bid. Contact a property solicitor to help you.
Tip: before ever bidding at a property auction, go to a few in your area as an observer to get an idea of how they work. They can be very nerve-racking!
Reverse Property Auctions: An innovative 'reverse auction' could mean a property can be picked up - in theory at least - for a few pence. First time home-buyers shut out of the property market could get the break they need under a new scheme which offers properties for a fraction of their market value.
The scheme auctions properties via an internet bidding process with a twist - the lowest unique (unmatched) bidder wins.
This service only allows bids to a maximum of five per cent of the property's value, so this Woking apartment will sell for anything between 1p and £9,000 - a fraction of its £180,000 market value.
The scheme works by charging bidders £3 per bid via the internet or SMS, which allows the operator to recoup the cost of the property and auction process.
Find out more about the house-buying process:
How Much Can I Borrow? l Find a Property l Mortgages l Conveyancing Solicitors and Legal Costs l Stamp Duty l Property Insurance Home Information Packs l How to Budget l Surveys and Surveyors l Solicitors l Removal Companies l Utilities Companies l Buying a Repossessed Property
Most useful and most popular pages on this site:
Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership
- Find a conveyancing solicitor to help you through the process
- Locate a families solicito r to help you draw up wills and ownership agreements
- Find a mortgage advisor to help you find the right mortgage
Click here to read more from First Rung Now
