Why buy at auction?
Bidding at a property auction, whether online or at a particular venue, is an exciting time for prospective buyers. At Youbid.ie we advise the following. Buyers need to be prepared to research the following in advance of either an online or live auction.
Get Legally & Financially ready.
Legal
The big day of the auction arrives and you are fired up to get your house at the right price. If you are able to obtain mortgage approval, (or have cash in hand) and you are fortunate enough to win the auction, you CANNOT change your mind. So avoid putting yourself in the position that, after the auction, you discover some significant aspect of the property does not fit your needs. If this happens it is because you did not prepare for the auction process properly. So it is vital to do your legal homework early and carefully.
Ask your solicitor to obtain a copy of the title deeds and any accompanying documentation. The vendor's solicitors details will invariably be found on the auctioneer's website as soon as their catalogue of auction lots is published.
Are you eligible for the House Renovation Incentive (HRI), which allows an income tax credit on VAT paid for the work in the next two years, as long as the work is carried out by fully tax complaint builders, (so well meaning "helping out" by relatives, handy around the house friends etc., does not count!). The HRI covers such items as kitchen supply and fitting, extensions, windows, attic conversions, rewiring, insulation and landscaping.
Things to look out for (almost always with the help of a surveyor or structural engineer) include:
- The condition of the roof, especially in older houses.
- Has planning permission been granted for structural changes that required it?
- Are the LPT and Household charge paid up to date?
- Are the utilities: electricity sockets and wiring, plumbing, piped gas supply (if fitted), legally up to the appropriate building standard? If not, does the asking price reflect this?
Financial
Unless you are a cash buyer, you will need to find a mortgage lender in order to support your bid.
Here is a selection of detailed questions mortgage lenders will ask you before considering your application.
- You will be asked how long you have lived at your current address as well as details of your previous address if you moved less than 3/5 years ago.
- You may also be asked questions regarding your married/separated/divorced status. If you are currently living in rented accommodation, your parents address and phone number may be required.
- If the mortgage application is a joint one, then details of the second applicant will also be needed.