This home-hunter bought a flat at auction on her lunch break
What do you usually do on your lunch break? The chances are you wander out of the office for a bite to eat or to meet a friend for coffee. Maybe you just catch up with the news at your desk.
But have you ever considered making a beeline for an auction house and buying your next home? Well, that’s what our very own Abi Oni did last summer, and she hasn’t looked back since.
“It wasn’t quite as simple as that,” admits Abi, who works as Rightmove’s research and planning manager.
She says she wants to dispel some of the misconceptions about buying at auction, revealing that the process has several advantages over the traditional system of home buying.
Abi bought a one-bedroom, fourth floor apartment in Kilburn at auction in July last year and has since renovated the property. Here, she tells her story and gives advice to like-minded home-hunters.
“I had been looking casually for a while and I’d already saved a deposit, so I was ready to buy somewhere in the near future,” she explained.
“I’d been to quite a few viewings and there was always something not quite right. On a few occasions I was just like ‘hell no’. They were either too dark or too small, I just couldn’t find anything that was right for me with my budget.
“As a single person, it’s hard to get on the property ladder. I knew how much of a mortgage I could afford, but banks will only lend a certain percentage of your salary.
“So, I signed up to an auction database through Rightmove and started getting emails about various properties.”
Abi said that the Kilburn property caught her eye, and even though it needed completely gutting, she could see the potential to transform it.
She added: “It was awful. The woman who owned it had been a smoker for 30 years and in all that time it hadn’t been upgraded at all. I’ve spent so much money on paint just trying to cover up smoke stains!
“But I saw the potential and that was enough for me. I thought I could potentially get a deal at the auction and I liked the area, which was really important to me.
“I did my homework and researched how much similar sized properties were selling for nearby. That way I knew how much I could spend at auction and how much I could spend renovating it.
“The auction itself is a strange process because there is no registration or anything. Essentially, anyone could walk in off the street and make a bid. It took place in a hotel by Marble Arch station.
“I literally popped out on my lunch and effectively came back a homeowner. Not bad for a bit of light shopping! It was the first lot of the auction, so we were straight into it.
“I was really nervous, so I took my sister with me, who had a bit of experience of what to expect. She was actually putting my hand up for me.”
There were five others all bidding on the property to begin with.
“But me and one other guy kept going and eventually I got it for slightly under my hard limit,” Abi explained.
“When the gavel comes down it’s a surreal moment. They don’t mess around though – someone fetches you and you have to transfer a 10% deposit on the property and a £500 admin fee to the auctioneers.
“It’s non-refundable, which is scary. But they give you 28 days to pay it, so it’s really important that you have your finances in order beforehand.
“I had met with a broker before the auction, I didn’t want to leave anything to chance. I went with a broker as I wanted to deal with someone who had been there and done it before, and could speed the process up for me.
“I got my mortgage in principle the day before the auction. I completed in 28 days, so the process is much quicker than the traditional route, which is a big advantage. There was no chain.
“Also, everything is sorted in advance. All the relevant searches and things like that are presented to you in a pack at the auction, which saves a lot of time.
“It also gives you confidence in what you’re buying as in theory you shouldn’t discover any nasty surprises down the line.
“Buying at auction was definitely worth it and I would encourage people considering doing the same to just go for it! But also, do your homework and don’t get caught in the moment – know your limits.”
Rightmove property expert Miles Shipside said: “Buying at auction is great for people who’re open-minded about looking for unusual properties, because there is such a variety of homes on offer.
“You don’t have to be a property expert to buy at auction, you just have to be prepared to do your homework and take the process seriously.
“There’s no risk of the sale falling through either as the sale is agreed when the hammer comes down.
“My main pieces of advice are these: do your homework, scrutinise the legal pack, don’t expect to pay the guide price and get your finances in order.”
Philip Waterfield, auction director at Strettons, said: “There are lots of myths about buying at auctions which need debunking.
“I often say to people ‘why shouldn’t you buy at auction?’ rather than ‘why should you buy at auction?’”
“It’s a transparent process. I understand the trepidation because when I point the gavel at you and ask if you’re definitely going to buy this property, I suppose it’s a bit of a leap of faith.
“But get your homework done and look at all the documents beforehand. You wouldn’t go for a medical after running a marathon and the same rules apply here.
“Invest time and money in taking professional advice and have money for the deposit to hand.
“There is no typical profile of buyer or profile of property at an auction because the very nature of it means that there is such diversity. I always say you don’t need to see the world if you go to auctions because the world seems to come to you.
“Whilst it’s my job to get the best deal for the client, I’m not going to sell you down the river. Some people can go over the top and it’s my job to make sure I refuse bids if I need to.
“Our next auction is on 25th March. We hold six auctions a year and usually there are around 70 to 75 lots per auction.”
Abi is making some finishing touches to her renovation so we’ll be revealing her transformed home in the near future.
