Get your hands on the freshest, most comprehensive auction and repossessed properties list in the UK.
Buying at a repossessed property auction can be a great way to grab yourself a distress sale or repossession bargain. In fact, almost all of the UK’s cheap property is sold via auction.
A legal commitment to buy
When your bid is accepted at a house repossession auction, you’re legally committed to buy. In law, your final bid is viewed as the exchange of contracts… just like that. You can’t pull out of completion without paying damages.
The big advantage to house repossession auctions is, of course, that you can’t be gazumped. And, unlike with a standard sale, the seller can’t withdraw at the last minute. Obviously this is completely different from buying through the normal channels.
Get your finances in place up front
House repossession auctions carry a heavy financial risk. When you’re buying a repossessed house, auction finances must be in place and you must be ready to go to completion within the timescale specified; usually 28 days. No excuses. And you must have your deposit ready on the day of the sale, typically 10% of the purchase price.
Set your top price and stick to it
Because of these obligations, it’s vital you set your top price in stone before you set off to house repossession auctions. Decide what you can afford and base your bid on what you think the property is worth to you. Bidding over your top price can get you into terrible trouble, so take someone with you to help keep your bidding under control if you think you might get carried away!
Repossessed property auctions – always do the legwork first
Never bid blind at house repossession auctions. Before you bid, make sure you’ve researched the property you intend to bid on. Get surveys. Instruct your solicitor to check the property’s title deeds, investigate local searches and dig out any special conditions of sale. And view the property yourself before placing a bid.
The cost of being prepared is much less than it will potentially cost you if you buy a repossessed home at auction and discover later that it’s about to be leveled for a new motorway, or about to fall down because of subsidence.
How do I find out where repossession auctions are held?
Keep an eye on your local papers, contact estate agents, ask lenders, talk to auctioneers and search online to find out when and where local repossessed property auctions are taking place.