Auctions - advice

[hiagain]

I'm thinking (just thinking!) of buying a house at auction. Does anyone have any advice. I guess that I need to get an engineer out, sort out a mortgage and inspect the title documents (at the auctioneers?). I don't want to seem too keen.

I'm worried about a couple of things. Firstly, getting mortgage approval for the top of my budget, but then maybe if I were to change the amount requested after the auction it might open up the whole application again and I might be refused?

Secondly, the deposit payable on the day can this be paid by cheque?

Oh and another worry is that they might take bids 'off the wall'. I've seen this on a property programme in the UK. The auctioneer basically pretended someone else at the back of the room was bidding so that the purchaser kept increasing their bids. They'd say '45' and then he'd point behind their head and say '50' and so they'd say '55' and so on. Does this happen here?

 

[Vanilla]

I'm thinking (just thinking!) of buying a house at auction. Does anyone have any advice. I guess that I need to get an engineer out, sort out a mortgage and inspect the title documents (at the auctioneers?). I don't want to seem too keen.

You need to have your solicitor check the title preauction, an engineering survey and a planning search.

I'm worried about a couple of things. Firstly, getting mortgage approval for the top of my budget, but then maybe if I were to change the amount requested after the auction it might open up the whole application again and I might be refused?

Talk to your bank manager about this, they've dealt with it before.

Secondly, the deposit payable on the day can this be paid by cheque?

No, normally either by solicitors client account cheque or bankdraft- so either lodge the entire 10% ( max deposit) with your solicitor and ask them to go along on the day or have a prearranged facility with the bank whereby you can either pop out and get the deposit bank draft or have a set amount ( but this shows your hand).

Oh and another worry is that they might take bids 'off the wall'. I've seen this on a property programme in the UK. The auctioneer basically pretended someone else at the back of the room was bidding so that the purchaser kept increasing their bids. They'd say '45' and then he'd point behind their head and say '50' and so they'd say '55' and so on. Does this happen here?

Yes, it does happen here and is legal. Auctioneers take bids off the wall up to the reserve price but are not supposed to after that. Once the property is 'on the market' then no more bids are supposed to be taken off the wall. [/quote]