Understanding Your Responsibilities After Winning a Bid

Congratulations! You have successfully wielded your paddle and emerged victorious at a property auction. However, the journey doesn’t end here. In fact, it’s just the beginning.

What To Expect Immediately After Winning

Once the auctioneer's gavel comes down, you’ll be required to sign the auction contract immediately. This is a crucial step that signifies your commitment to purchasing the property.

Paying the Deposit

Typically, you'll need to pay a deposit of about 10% of the purchase price right after the auction. This is a non-refundable payment that secures your bid. Make sure you have funds readily available and confirm what forms of payment are accepted, as these can vary by auction house.

The Completion Timeline

Upon winning, it’s important to note that you often need to complete the purchase within 28 days of the auction. Your solicitor will guide you through this process, which typically involves:

• Finalising details with your mortgage lender (if you are financing the purchase)
• Conducting further legal checks and searches
• Arranging a survey or valuation of the property

The Role of Your Solicitor

Your solicitor plays a pivotal role in this phase. They will: - Prepare for completion - Handle the debt repayments if applicable - Ensure all legalities are addressed

Securing Your Mortgage

If you require a mortgage, it’s vital to get your finances in order quickly. Contact your mortgage lender to confirm your offer and ensure they are set to release funds upon completion. Remember, auctions often have strict timelines that you need to adhere to.

Conducting Additional Inspections

Before the completion date, you should also arrange for a final inspection or snagging survey. This helps identify any issues that may need addressing before you take full possession of the property.

Insurance and Protection

It’s wise to have building insurance in place to cover any potential damages from the moment you win your bid. This is a safeguard for your investment, ensuring you’re protected.

Final Preparations Before Moving In

As the completion date approaches, we recommend establishing a checklist for the move. Consider the following:

1. Arrange for utilities (water, gas, electricity, and internet)
1. Contact a removals company for moving logistics
1. Get to know your new neighbourhood!

Common Pitfalls to Avoid

Winning at auction can be exhilarating, but ensure you don’t rush through crucial steps. Here are a few common pitfalls to be wary of:

• Underestimating Costs: Beyond the purchase price, consider renovation costs, stamp duty, and legal fees.
• Neglecting Due Diligence: Ensure you’ve done your research on the property, including title checks and any outstanding debts.
• Ignoring Timeframes: Keep track of the timelines and don’t miss out on deadlines.

Conclusion

Winning a property at auction can be a thrilling experience, and understanding what follows is crucial for ensuring a seamless transition into home ownership. By being prepared and informed, you can navigate this exciting journey with confidence and enjoy the rewards of your new investment.