Gibson Auctions

Going once, going twice... Sold!

In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”

 In an article in the London Times recently it was reported that the words “Going once, going twice . . . sold!” are marking the moment when property ownership becomes a reality for an increasing number of buyers.

 

Apparently with prices continuing to rise house hunters looking for value are turning to auctions, where there are still bargains to be found. Buying this way also removes the uncertainty and delays associated with buying through an agent. Once the gavel falls on your high bid, you secure your house there and then.

 

Essential Information Group, which tracks the results of UK property auctions, says that in February there was a 15 per cent year-on-year rise in the residential market, with £355 million spent on homes. Christopher Coleman-Smith, the head of auctions at Savills, has witnessed this surge at first hand. “Our last auction was fantastic, with a 90 per cent success rate,” he says. “It was a bit like 2007 again; the room was very strong with a wide cross-section of buyers including owner-occupiers, buy-to-let investors and developers.”

 

Properties at auction can sell at a discount because of the seller’s circumstances, for example bankruptcy, repossession or the need to clear debts. There is also a lot of ex-council stock, and some private sellers simply like the speed and simplicity of the process.

 

Samantha Collett, the author of How to Buy Property at Auction, says: “As a vendor it’s a very certain and speedy way of making a sale. On that day it’s gone — they get their 10 per cent and 28 days later they actually get the money. That’s hugely attractive.”

 

Whether or not you get a home for a song depends on many factors. Andrew Binstock, a director and auctioneer at Auction House London, says: “The quality of a property’s marketing, the promotion of the event itself, even who turns up to the auction on the day can all have a significant impact on whether or not there is a bargain to be had.”

 

Collett, who describes the market as “hot, buoyant and competitive”, says: “There are still bargains, especially if you’re looking for rental properties in the Midlands or the north. You can get some real steals right now and they have good yields.

 

“In London and the southeast it’s more about capital growth, but there are still some really keen bargains out there. If you’re the only serious bidder on the day you can walk away with a great deal. It all depends who’s in the room. If a property is being bid for by investors the price won’t be as high as owner-occupiers. Developers need to make a margin.”

 

If you want to avoid competition from developers look for listed buildings, which they sometimes avoid as they can be difficult to turn around quickly.

 

When buying at auction it’s critical to have your financing in place. Winning bidders must pay a 10 per cent non-refundable deposit on the day, which they will need in cleared funds, and then settle the balance within 28 days.

Mark Harris, the chief executive of mortgage broker SPF Private Clients, says: “It is vital finance is organised up front, whether it be cash for the deposit, or a mortgage, and this should be a ‘mortgage offer’ as opposed to a ‘decision in principle’, which some buyers rely on at their peril.”

 

Guide prices are only an indication of the seller’s minimum expectation and are usually exceeded significantly. At a Savills’ auction this month a two-bedroom house in Walthamstow, East London, with a £375,000 guide price sold for £461,000 and a three-bedroom house in Chessington, southwest London, with a £235,000 guide price sold for £286,000.

 

The legal packs prepared by the seller’s solicitors are a mine of information. They contain home information packs, energy performance certificates, special conditions of sale, title deeds, leases, land registry entries and other useful information.

 

 If you are considering putting in a bid, hire a solicitor to look at this paperwork, as it could save you a fortune in the long term if there are any legal problems.

You might also hire a surveyor to get an idea of the cost of improvements and spot any major defects. You may balk at spending about £500 on this when you could be outbid on the day, but buying a home with significant problems could be far more costly. With auctions “caveat emptor” should be your watchwords.

 

Binstock says: “Auction stock can vary massively. It is important that you know what your financial limits and capabilities to do work are before going for a property. Prudent buyers do the research so that they have a handle on what costs are likely to be involved once the property is theirs.”

 

You should also look at what houses in the same road have sold for recently to get an idea of the market rate. If buyers bid up a property it can go for more than it would with an estate agent, so establishing an idea of prices with online research is essential. “Don’t always assume that just because it’s at auction it’s a bargain,” Collett says.

 

If you’re the highest bidder the gavel will fall and, subject to the reserve being met, you have bought the house. This legally binding arrangement is the equivalent of exchanging contracts. You will be asked for payment of the deposit and the auctioneer may require a buyer’s fee of in or about 1 per cent of the sale price.

If you aren’t the winner there may still be a chance to get the property. If the reserve price was not met, a deal can sometimes be secured immediately afterwards if the seller wants a fast sale. In this situation it can pay to stay and speak to the auction house.

 

So are auctions for you? Collett, who abandoned estate agents after being left out of pocket when a vendor pulled out of a deal on the day they were meant to exchange, certainly thinks so. “I don’t think that anybody who has bought or sold at auction would go back to using an estate agent,” she says. “It’s the easiest, most convenient way to buy property — and it’s great fun.”