Ever Thought About Buying at Auction?
When you think about buying a property, you probably picture searching Rightmove, arranging a viewing, making an offer and then waiting for the usual buying process to unfold.
But there is another way to buy a property — property auction
And with more properties now being offered through online and secure-sale auction methods, it can be an option worth understanding, whether you're a first-time buyer, an investor or simply looking for something a little different.
A current opportunity in NW11
One example currently being marketed by Moreland is The Market Place, Falloden Way, NW11 — a two-bedroom first-floor flat with a guide price of £250,000.
The property is being sold via Secure Sale, with the option for immediate exchange of contracts. (moreland.web.lifesycle.co.uk)
For buyers who haven't considered purchasing through auction before, this raises an important question:
How does it actually work?
What is a property auction?
Traditionally, property auctions involved bidders sitting in an auction room and competing against each other in real time.
Today, many property auctions take place online, making the process much more accessible.
There are also different methods of auction and secure sale, so the exact terms can vary from property to property.
The important thing is to understand the particular conditions attached to the property you are interested in before you bid or make an offer.
What happens when you buy at auction?
The process is different from a conventional property purchase.
1. Find a property
You can search for auction properties in much the same way as you would any other property.
At Moreland, we can help you understand the property, arrange a viewing and answer questions about the sale process.
2. Do your homework
This is particularly important when buying at auction.
Before bidding, you should carefully review the legal pack, understand the auction conditions and make sure you have considered any additional fees or charges.
You should also arrange appropriate legal and financial advice.
Guide prices are not necessarily the final selling price, and auction properties may be subject to a reserve.
3. Make sure your finances are ready
Don't wait until you've won the property to think about how you're going to pay for it.
Speak to your mortgage adviser or lender in advance if you require finance, and make sure you understand the timescales involved.
It's also important to budget for costs such as Stamp Duty, legal fees, surveys and any buyer or auction fees that may apply.
4. Bid or make your offer
Depending on the method being used, you may bid online or follow the specific process set out by the auctioneer.
If you are successful, you may be required to exchange contracts immediately or very shortly afterwards.
This is one of the biggest differences compared with a conventional purchase.
An auction is not an opportunity to bid first and think about it afterwards.
You should know exactly what you're buying and understand the terms before committing.
5. Exchange and completion
Once contracts are exchanged, the transaction becomes legally binding.
The completion timescale will depend on the particular auction conditions, so make sure you understand this before proceeding.
Could buying at auction be right for you?
Auction isn't necessarily for everyone — but it can open up opportunities that you might not otherwise consider.
It can appeal to buyers who are looking for:
Properties requiring refurbishment
Investment opportunities
Properties with particular circumstances surrounding the sale
Development opportunities, subject to the relevant permissions
A different route to purchasing a property
There are also risks, which is why doing your homework is essential.
The guide price should not automatically be viewed as the amount you will eventually pay, and additional charges may apply.
How Moreland can help
Buying through auction doesn't mean you have to navigate the process on your own.
At Moreland, we can help you understand the property you're considering, arrange viewings and explain the information available to you.
Our team can also help you understand what happens next and put you in touch with the relevant professionals where appropriate.
We believe buying a property should be about making an informed decision — particularly when the process is unfamiliar.
Interested in The Market Place, NW11?
The Market Place, Falloden Way, NW11 is currently being offered at a guide price of £250,000 and is being sold via Secure Sale, with immediate exchange of contracts available. (moreland.web.lifesycle.co.uk)
If you've never considered buying at auction before, this could be a good opportunity to find out more.
Contact Moreland to arrange a viewing or speak to a member of our sales team about the property and the buying process.
Auction and secure-sale terms vary between properties. Always read the legal pack and sale conditions carefully and take appropriate legal and financial advice before committing to a purchase.