Property Auctions Coventry

By Sarah Garrod

With property prices falling there’s never been a better time to pick up a bargain if you have the funds behind you, and where better to start than an auction?

It may sound grim, but with home repossessions on the rise, more and more great deals are finding their way to the auction house. If you’re a first-time-buyer with a deposit, then an auction could be just the place for you to find yourself a good buy and with auction lots being very diverse on the whole, chances are you’ll find the home of your dreams.

Barnard Marcus are one of the largest residential property auctioneers in the UK. We interviewed their divisional managing director, Chris Glenn, to give us some tips for anyone thinking about buying at auction for the first time, and to explain a bit more about auctions as a whole.

What would you suggest for those buyers who have never been to a property auction before they go?

Chris says: “Preparation is the key to success. Go to an auction before you go to bid so you can get the "feel" of what happens. When you are bidding you will need to make sometimes life changing decisions in a matter of seconds so to know the environment and procedures makes the process less daunting. Be well prepared both financially and legally. Arrange your mortgage funding in principle before you even start looking at the auction catalogues, that way you will get an understanding of what you can afford. Also, contact a solicitor. Make sure they can act quickly and get paperwork sorted out like ID documents and other papers as your solicitor will need them before you even find a property. This will take a lot of the stress out of the process and make your auction buying experience an enjoyable, fun and possibly profitable one."

Has there been a significant increase in the number of properties going to auction since repossessions increased?

Chris says: “It is a fact that there has been an increase in the number of properties at auction and some of these are repossessions. The lenders have a duty of care to the defaulting borrower even after possession. The mortgage account will continue to accrue interest and cost until the property is sold and the transaction completed. There is a risk that if the property is not sold within a reasonable period of time then these costs will escalate and therefore, any shortfall between the sale proceeds and outstanding loan will be far greater. Auctions have proven to continue to be an active market where properties continue to sell and therefore, an ideal market for lenders to place repossessions.”

Do repossessed homes offer a good deal, particularly for first time buyers?

Chris says: “There are a number of advantages for any buyer attending an auction and these are not exclusive to first-time-buyers. The properties offered by auction will have a full legal pack available in advance of the au...