Auction Properties - Building Survey/Homebuyer Reports

[Sammedd]

Hi,

I'm new to property investment and have recently been looking at property auctions. One of the stumbling blocks I have come across is that I'm not entirely sure what I'm looking at when it comes to any defects and potential problems which may cost me in the long run. I don't want to invest blind so have been looking at getting homebuyer reports done on each of the properties I'm interested in. However, these are going to cost me in the region of £400 per property, so in the end will cost me in the region of £2000 without any guarantee I will win the property come auction day.

I'd like advice on how people overcome this. Do you know what you're looking for yourself? Do you have a surveyor you use on a regular basis who gives you a good price for regular work? Or do you simply not bother getting a survey taken out and risk it?

It's put me off from going down the auction route altogether, so hopefully there is a way around this which I haven't come across.

Any advice will be greatly appreciated.

Thanks,

Sam

 

[diyhelp]

Hi Sam,

I thought the auction houses provide a legal pack which mentions any issues? I don't think they are as indepth as one would prefer but this is where a visit to the property is vital. There are risks going down the auction route but this is the reason they are perceived to offer "value for money". You need to balance up the risk/reward ratio.

 

[Sammedd]

Hi diyhelp,

Thanks for taking the time to respond. From my limited experience, the legal pack doesn't include any building surveys or mention any issues with the property itself. It is up to the buyer to do their research. Some have included things such as EPC's and environmental reports, which are useful, but nothing like a Homebuyers Report.

Do most people not bother getting a survey done and take the risk? I'd always visit any property I would be looking into invest into, but as I'm inexperienced I wouldn't know what I'd be looking out for!

 

[diyhelp]

I would take all precautions I could to protect any investment although I am not sure about surveys and getting access to the property. There are risks with auction purchases and hidden issues seem to be the main one.

 

[realdeals]

Might be worth calling the auction house and asking them the question if you are not sure. They will likely be very helpful as they will want more bidders in the auction.