Survey to get pre bidding for a house at an auction.

amsbam1

We are considering bidding for a house at an auction coming up in a couple of weeks. What type of survey would you think is best?

As, there are likely to be a number of bidders, we are unlikely to buy the property, so we do not want to pay too much for a survey.

Surveyors tend to want between €400 and €500 for this survey. This is a big cost for a house we in most likelihood will be out bid for.

It would be nice to get a quicker cheaper survey that would just focus on the bigger potentially more costly issues, and ignore the smaller issues like window hinges, etc,

L1011

The bigger issues are the one the surveyor needs experience, insurance etc to give an opinion on. You're not going to save anything substantial

davo10

Op if you have not been at an auction before, you need to do your homework about the bidding process and the rules of auctions, this is not like normal bidding on a property with an EA.

Auctions can be great for picking up a property you want at a much reduced price, these are usually distressed sales so the person/lending institutions wants them sold quickly.

These are good tips from the EBS website, note in particular that a successful auction bid forms a contract and for problem properties in particular the contracts are signed immediately after the auction.

Irish auction tips

• Don’t forget to register
• Valuation, legal work, mortgage approval should all be done in advance
• Bring your cheque book or bank draft as you will have to pay a 10% deposit on the day if your bid is successful.
• Arrive early and get a good seat in full view of the auctioneer
• Set a ceiling for your bids and don’t exceed it
• Tips include only bidding when you have to - even if that means waiting until the hammer is about to fall.
• Never forget, once the hammer does fall, the property is yours, warts and all!

For problem properties the deposit is non refundable, but you will be told in advance if a property has a problem (title/structural), private treaty sales have refundable deposits unless otherwise indicated before bidding starts.

This is an article on the Society of Chartered Surveyors website:

---

How do we prepare to buy a house at auction and what do we do on the day?

March 2013
Question
We are a couple of first-time buyers and we have been monitoring the success of recent auctions. We would like to buy a house at an auction later this year if we can find the right one. How do we prepare for this and what do we do on the day?

Answer
Auctions have become increasingly popular in recent years. However, they can also be stressful experiences for people who do not know what to expect and are ill-prepared.

As a potential buyer, your first step is to get a copy of the property brochure from the auctioneer or visit their website. This contains the details of the property or properties to be auctioned. I would also recommend engaging a solicitor to review the contract. Many bidders don’t and it is a false economy. Be sure to check addendum for last-minute changes, as the contract is binding.

From the seller’s solicitor you will need the legal pack, which contains the contract and other documents such as title information, maps and other particulars.

Ensure that you have all due diligence done prior to auction day, including inspection, survey, and title review. It is also vital have a loan offer in place, not just loan approval.

If you wish to purchase a property, you will need to be in a position to put down a deposit and have the financing to close the deal.

Now that you have had the property surveyed, have obtained a loan offer and your solicitor is satisfied in relation to the title and has advised you of the conditions of the sale of the property you wish to buy, it is time to attend the auction.

Always make sure you know where the auction rooms are and leave plenty of time to find parking.

It is important to establish your maximum bid limit and not to go above it. Do not be pressurised into making bids that you are not comfortable with or cannot afford.

Once a property is declared “on the market”, it will be sold if there are no higher bids. Before the hammer goes down, the auctioneer points to the highest bidder and states the final amount bid. Once the hammer falls, there is a binding contract, which is subject to the conditions of sale. If you’re the buyer, you will be asked to sign the contracts and pay a non-refundable deposit.

If a lot doesn’t reach its reserve price, the auctioneer announces that it has not been sold, declares it withdrawn and doesn’t bring down the hammer.

Good luck.

Rowena Quinn is a member of the Residential Agency Professional Group of the Society of Chartered Surveyors Ireland , scsi.ie

amsbam1

Thanks for all the info Davo. Yes, i'm familiar with buying at auctions. I'm just interested in peoples views on getting a cut down surveying job done.

PhoenixParker

I doubt it'll be possible. From the engineers point of view you're not cutting anything out of the job so there's no reason to cut you a deal on price. He still has to do the time consuming bit of going to the site, inspecting it carefully and writing the report.

He still needs to look at the window hinges a part of his inspection of the Windows for major costly issues. Similarly all the other small details are part of the overall main inspection, the only slight saving might be writing that bit up but leaving parts of the survey out also exposes him to more liability/risk to his professional reputation.

quadrifoglio verde

If I was buying at auction I'd be wanting that surveyor to be on the ball when he's doing the survey, not someone doing a half arsed job on the cheap
Once that hammer falls, I've bought it. I haven't bid subject to survey
Get a good surveyor to do a thorough survey, you're going to the auction with the view of winning the auction, last thing you want is to find out that the roof is rotten in two months time