What to Expect From Property Auctions

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Property auctions are a good way to sell a property quickly for a low price. However, it is essential to do your homework before you bid. It is recommended to get an expert opinion on the property’s condition and estimate renovation costs. You should be aware that property auctions are a risky business and should only be undertaken with great care.

If you bid on a property at an auction, you will be given a set period of time to complete the sale. This means you should have a mortgage agreement in principle and ready before you bid on the property. Once you’ve placed a bid, you’ll usually be sent a legal pack prepared by the sellers’ solicitors. The pack will include the terms and conditions of the auction, as well as results of a local authority search. Make sure you read the fine print and contact a solicitor in case there are any legal issues.

When you place a bid on a property in a property auction, you will also be required to enter a contract with the auction house. A contract will legally bind you to purchase the property, so if you back out of the deal, you’ll forfeit your 10% deposit and incur admin costs. Modern property auctions are more flexible than traditional auctions, but backouts can still happen.

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