Purchasing a property on auction

[Willie Trombone]

What is the general consensus for purchasing a property on auction. The auction house reckons deposit required on the day, the deed of sale is signed, and dependent on those terms, the remainder of the balance is paid in due course. What is the general consensus for getting bank loans around auction property? Do you get some kind of pre-approval before the auction or do you approach the bank after the auction? The deposit is no big deal, but just wondering about the remainder of the cash - what if it takes the bank longer to inspect and approve the bond? Or what if they don't see value and don't approve the bond after you've signed the deed of sale?

I get that it's probably down to the terms and conditions of the sale, but are there standard ts&cs for these things?

 

[rietrot]

Just make sure what happens to your deposit if the bank declines you. Get pre approval if you can. The biggest concern with auctioned properties seem to be outstanding municipal accounts and evicting sqauters.


Tge T&cs should be standard call the auction house and ask for a copy.

 

[Ares1000101]

Hmm I should follow this. Nice way to get a house on the cheap, provided outstanding accounts are sky high.
OP, is there a site you are browsing? Would like to have look at whats out there.

 

[Noseworthy]

following as relevant to my interests

 

[bromster]

There is the voetstoots clause, so potential for massive expenses after purchase with no recourse through agents.

I asked the bank when I was looking into it. They said I'd be lucky to get 70% finance from the bank because of the inherent risk.

The auctioneers also take quite a cut. IIRC, this is all calculated after your bid, so you need to factor these additional costs into your highest bid.

I did the maths, and decided that it wasn't worth it for me considering that these CPT properties were selling at a premium anyway. If you get a solid place for a good price, you might score a few hundred thousand. If you get a lemon, you're fooked.

 

[Excalibur]

Current tenants can simply refuse to leave.