Buying At Auction - A Quick Summary
 

If you buy via an estate agent, the procedure is a straightforward and familiar one. You see a property you like, drive by, look at the property particulars and then view internally etc if it  appeals to you. You make an offer. If it is accepted, you finalise your finances. You have a survey done. You bring in a solicitor. Assuming you can sell your property, everyone else in the chain sells theirs, and no-one starts playing silly beggars, you'll buy and move in two to three months down the line. 

If you want to buy at auction, the overall procedure is broadly similar. Taking each auctioneer in turn, you phone for a catalogue, trawl through it and see which properties you like the look of. You study photos, descriptions and go and view the properties that catch your eye.

Next, you sort out your finances. There's no great mystery involved here - you have the same financing options as you'd have with a conventional purchase. You need to act promptly though as the auction may be only three weeks away. You absolutely must have rock-solid finance in place when bidding.

You should have a survey done before you bid. If you're financing via a mortgage, the mortgage company will arrange for a valuation survey to be carried out. Don't rely on this - it doesn't guarantee the property is structurally sound and worth buying; only that it's worth more than the borrowings.

Have your own survey done by sourcing surveyors either by word-of-mouth recommendations or by going through Yellow Pages. One or two may agree to let you go around with them when they survey the property - this is helpful as they may make a few off-the-record, informal comments which they'd not put in writing. You can go for a homebuyer's report which is fairly detailed and should highlight potential problems. A full structural survey is more detailed and is better for older properties and those that need renovating.

You have to bring in a solicitor too just as you would for a conventional purchase. Again, choose one by personal recommendation or trawl through Yellow Pages and approach several until you find one that suits you. The auctioneer will have what's known as a legal pack which contains much of the legal paperwork that's needed - ask for a copy at the earliest possible stage and give this to your solicitor.

So far, the process is broadly the same. The main difference is that, with a conventional purchase, you view the property, make the offer and then finalise your finance, sort out the survey, the legal paperwork and complete the deal. With a property at auction, it's the other way round - you'll have the finance, survey and most of the paperwork done first so that you can bid at the auction.

You then go to the auction and bid for the property. The beauty of buying at auction - other than the reduced price (in most instances) - is that once that hammer has fallen, the property is yours with completion typically 28 days later. The price is fixed and there is no last-minute gazumping. The deal will complete as expected.