Whether buying or selling a property by auction, there will be differences in the way a conveyancing solicitor carries out the legal work when compared to a normal transaction.
Auction provides a secure sale. Sold means sold. The buyer cannot back out of the sale or attempt to reduce their offer.
There are no upfront costs and you can pass your auction sale costs to the buyer! There is no risk of a broken property chain or buyers changing their mind at the last minute. Sell within a matter of weeks, with the benefit of competitive & transparent bidding.
On an auction sale, the successful bidder will have to pay a deposit (usually 10 percent of the purchase price) to the auctioneers immediately after the sale. Properties at auction are offering great value for money, and a short transaction time.
Unless you are a cash buyer, you will need to have a mortgage in principle in place before attending the auction. Mortgage lenders will only lend you the amount the property has been valued at, not what you paid for it. First time buyers are also eligible to purchase at auction and are realising that purchasing a repossessed home at auction can save them about 30%, offering a more affordable way of getting on the property ladder.
Going to an auction is one way to land a property bargain while, at the same time, avoiding the rigmarole of the lengthy, conventional buying process.But it’s not for the faint-hearted.
Your purchase is binding as soon as the auctioneer’s hammer slams on your bid, with all the benefits, and drawbacks, that come along with it. Before even considering buying at auction, it’s crucial to know what you’re getting into. Here at Seymours Solicitors we would recommend you contact one of our experts in the conveyancing department to discuss further and get step-by-step guidance.
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