By Peter Hornor, auctioneer and chartered surveyor at Brown & Co.
The auction process appears to be of more and more interest to people looking to achieve a transparent and satisfactory result over a given time period. At the risk of repeating myself, I enclose here some of the questions we are receiving from prospective buyers looking at properties at present. The auction process works well but I have always said that you need to be careful and a thorough investigation of the process and the property is necessary before bidding.
Question: Do I need a survey?
We always recommend an inspection by a Chartered Surveyor whatever the property. Any buyer needs to be absolutely sure of the structure and the condition is very relevant. Often auction properties do need renovation and it is more important than ever for a surveyor to provide a logical independent report setting out exactly what needs to be done to any property and some valuation advice as necessary.
Question: What about a solicitor?
We always recommend liaison fairly early on in the process. A solicitor will want to be sure that any buyer is not only carrying out a survey but will want to look at the auction catalogue, Home Information Pack and the special conditions of sale that relate to the property. There may be planning issues or covenants that need investigation and anything relating to the title is relevant and will affect what somebody should pay.
Question: Do I need to get other specialists involved?
You may do following results of the survey which has been carried out. Your surveyor will provide guidance on the relevant inspections required and these may include a structural engineers report and damp and timber surveys for instance.
Question: What about finance?
Unlike the conventional approach to selling property, if you go down the auction route you need to be in a position to buy on the day of the auction. Where you need to borrow money you need to carry out early investigations with the relevant banks and building societies so that you are in a position to pay 10% of the purchase price at the fall of the hammer.
Question: What about the day of the auction?
Be prepared. Take your identification with you in the form of a passport or driving licence, together with evidence of your current address (ie utility bill, council tax bill, etc) and your cheque book! Take a friend or a professional advisor if you need help with the bidding process and then don’t get too carried away!
For further in formation about the process of buying and selling at auction contact Peter Hornor at Brown & Co, 01603 767606.