Finding a 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.
The buying process is obviously 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 completion. 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, click here to reach high street brokers Bradford & Bingley. 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'.
If you are interested in a shared-ownership mortgage, visit Tricon Ltd .
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.
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