Experiences at auctions

Sleipnir

Damn, it doesn't look like I can't get the house I want before auction. The seller changed her mind and has decided to go ahead the auction.

I'd imagine it's very stressful and I am going to go to other auctions just to see what they're like.
So, I was wondering what people's experiences of auctions were?

You usually need 10% of the price of the house there and then to present of you win the bid so do you generally need to have your house sold before you go to auction?
That's a bit scary tbh.

Victor

You need to set yourself a sensible limit in the auction. Many of them start slow, work themselves into a fury and then slowly come to a close.

I imagine you only need to be able to write a cheque at the auction. You can ask your bank for bridging finance, so you don't *have to* have your own house sold, however you do need to be happy you can afford the new house if your own house doesn't make what you wanted.

Be careful when doing the bidding, if you bid successfully and then withdraw, you can be hit for the costs of reselling *and* any difference between your offer and any future offer. In cases like this, the auctioneer has a statutory power of attorney to sign on your behalf, even if you disagree with him signing.

Sleipnir

Thanks for the reply Victor.
I'm a strong believing in staying out of the bidding until the end. People start bidding against each other without thinking about what they're actually doing; SPENDING MONEY QUICKLY!
So I think I'll go and sit quietly at the back until it all slows down and then see where I'm at.

ken90

Make sure to have bridging finance arranges in advance- AS BRIDGING FINANCE!.

It can be extremely difficult/impossible to arrange on occasions-be warned.

Also it is normal for guide to be 30% under price.

Despite all the dishonesty of some agents, your bid will be legally binding on you.

Your bid will not be legally binding on them until you pay over the deposit
(Supreme Court Decision).

ressem

Don't give up all hope of a bargain, a colleague bought a newly built town house for guide -10% pre-auction.

No political / local connections / backscratching or anything.

House is in midlands where you often see high priced houses on the market for 6 months+ without guide prices moving.