closing tag is in template navbar
Time Factors Watches



TZ-UK Fundraiser
Results 1 to 21 of 21

Thread: Buying house at auction?

  1. #1

    Buying house at auction?

    Im going to bid on a house at auction on tuesday.

    Ive found a bit of history on it. It was sold to someone at auction in July this year. Now its in again in exactly the same state as it was sold last time. Should this worry me?

    Ive looked over the legal pack etc and everyhting seems fine....

  2. #2
    Craftsman
    Join Date
    Jul 2016
    Location
    West Yorks
    Posts
    902
    Certainly warrants further investigation, do a planning search to see if they made any applicqtions.

  3. #3
    Definitely worth being very cautious. Thereís a reason why the buyer hasnít looked to improve the property, and you donít want that to be your problem.
    It's just a matter of time...

  4. #4
    Craftsman
    Join Date
    Sep 2015
    Location
    London
    Posts
    534
    I'd take a further look - the planning thing is a good shout.. but the outlook has obviously changed for a lot of people this year and that will include investment possibilities/choices.

  5. #5
    Craftsman
    Join Date
    Oct 2016
    Location
    Hertfordshire UK
    Posts
    434
    Most properties at auction have a hidden problem/defect. Thereís normally a reason they donít sell on the open market via an estate agent . Go in with your eyes wide open! Also remember when the hammer goes down youíve bought it and itís treated as an exchange of contracts with completion normally around 28 days thereafter so make sure youíve got your finances in place to be able to complete in time

  6. #6
    Craftsman
    Join Date
    Jul 2016
    Location
    West Yorks
    Posts
    902
    Link?

  7. #7
    Craftsman
    Join Date
    Nov 2010
    Location
    Lincs
    Posts
    909
    Error
    Last edited by bobc; 28th November 2020 at 21:44. Reason: Error

  8. #8
    I bought a property at auction in July without even viewing it .
    Maybe the buyer under estimated the work needed to sort it .
    Maybe they lost there job ,thereís loads of things ,but then it maybe a total wreck but it depends what it goes for .
    The main thing is thereís nothing hidden in the legal pack


    Sent from my iPhone using Tapatalk

  9. #9
    Master
    Join Date
    Apr 2017
    Location
    M62 corridor
    Posts
    3,303
    Quote Originally Posted by smurph306 View Post
    Ive looked over the legal pack etc and everyhting seems fine....
    Unless youíre a solicitor, Iíd be tempted to get one to look over the legal stuff.

    Probably too late for Tuesday, to be fair.

  10. #10

  11. #11
    Craftsman
    Join Date
    Dec 2015
    Location
    Devon, UK
    Posts
    284
    I think a lot of mortgage companies have an issue with houses bought and sold in under 6 months. Not a problem if youíre a cash buyer, but if itís a concern for lenders then should be for you and worth trying to establish why.


    Sent from my iPhone using TZ-UK mobile app

  12. #12
    Master murkeywaters's Avatar
    Join Date
    May 2013
    Location
    Near the sea
    Posts
    5,294
    I buy houses at auction, as said the legal pack is a good first step, also call the local council and ask if there is any outstanding building issues, the last house I did had a problem with the outside wall but wasnít noted in the legal pack.

    Check itís traditional build, if not itís hard to get a mortgage, and any property without a kitchen, bathroom or sound roof is un-mortgageable and check any lease holds for time remaining, yearly fees..

    Lots of hidden issues like dry rot, minor subsidence, flood areas equaling no house insurance or dreaded Knot Weed which will not be visible during the winter, not all these things will be mentioned in the legal pack so do your homework..

  13. #13
    Master blackal's Avatar
    Join Date
    Mar 2012
    Location
    Scottish Borders
    Posts
    4,270
    Quote Originally Posted by Omegamanic View Post
    Definitely worth being very cautious. Thereís a reason why the buyer hasnít looked to improve the property, and you donít want that to be your problem.

    That would be my outlook. Could be a case that first buyer didn't do sufficient due-diligence, and is hoping there is another buyer similar.

    Of course - it could be the first buyer's situation changed.

    I'd even go so far as to ask neighbours what activity there had been in the intervening months.

  14. #14
    Thanks for the infor guys! Very useful.

    The house is two bed end of terrace. It needs renovation. Ive looked at it threee times. Once with a builder. It seems fine physically.

    Im a cash buyer.

    I checked the title on Land Registry and it has the same owner since 2001. So I assume this means that the buyer 5 months ago didnt or couldnt go through with it? Would this be updated immediately on Land Regitry if they did?

  15. #15
    Master blackal's Avatar
    Join Date
    Mar 2012
    Location
    Scottish Borders
    Posts
    4,270
    Quote Originally Posted by smurph306 View Post
    Thanks for the infor guys! Very useful.

    The house is two bed end of terrace. It needs renovation. Ive looked at it threee times. Once with a builder. It seems fine physically.

    Im a cash buyer.

    I checked the title on Land Registry and it has the same owner since 2001. So I assume this means that the buyer 5 months ago didnt or couldnt go through with it? Would this be updated immediately on Land Regitry if they did?
    Ah-hah! I wonder how that works? What is the penalty for a buyer not going ahead with a house auction?

    Always possible that he simply didn't complete.

  16. #16
    Quote Originally Posted by blackal View Post
    What is the penalty for a buyer not going ahead with a house auction?

    .
    Iirc you lose your deposit

  17. #17
    Master
    Join Date
    Apr 2017
    Location
    M62 corridor
    Posts
    3,303
    Quote Originally Posted by blackal View Post
    Ah-hah! I wonder how that works? What is the penalty for a buyer not going ahead with a house auction?

    Always possible that he simply didn't complete.

    The auction bid, as I understand it, creates a binding contract. Not sure how it would work but assume the bidder would be responsible for costs and loss of any profit if the property resells for less. The seller would presumably have to take a view on whether it was worth chasing a shortfall.

    The one time some friends and I bought a property at auction, we had to give a cheque for 10% on the spot.

  18. #18
    Its ten percent on the day of auction.

    According to records this sold in July for 165k.

    So he will have paid £16500 on the day plus £6k fees.

    Thats why i was expecting to see a change of owner on the land registry. Unless you are allowed to just not register as an owner for ages??

  19. #19
    Master
    Join Date
    Nov 2013
    Location
    South West, UK
    Posts
    1,545
    Subsidence? End of terraces can suffer from this.

    If it is and itís not cost effective to repair, how do you intend to move it on. Third auction in a year?

  20. #20
    Journeyman
    Join Date
    Aug 2020
    Location
    Amsterdam
    Posts
    75

    Question

    Quote Originally Posted by murkeywaters View Post
    I buy houses at auction, as said the legal pack is a good first step, also call the local council and ask if there is any outstanding building issues, the last house I did had a problem with the outside wall but wasnít noted in the legal pack.

    Check itís traditional build, if not itís hard to get a mortgage, and any property without a kitchen, bathroom or sound roof is un-mortgageable and check any lease holds for time remaining, yearly fees..

    Lots of hidden issues like dry rot, minor subsidence, flood areas equaling no house insurance or dreaded Knot Weed which will not be visible during the winter, not all these things will be mentioned in the legal pack so do your homework..
    You've answered a few of my Qs ("Isn't there a legal disclosure required?"), but what happens if something "that should be disclosed [known but not mentioned]" is not? Does the buyer have any protection?

  21. #21
    Master Mark020's Avatar
    Join Date
    Jan 2012
    Location
    Amsterdam
    Posts
    2,365
    Most likely not more than the original buyer got. And if you are buying at a foreclosure you're effectively buying from a bank which knows zip so logically should be pretty limited reps and warranties.

    In this specific case the seller may just be a flipper which tries to make some quick money.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Do Not Sell My Personal Information