Caveat Emptor meaning ‘Let the buyer beware’ is a well-known phrase when it comes to buying property at auction. It’s not meant to scare people – it’s more of a cautionary note to do your homework before you bid and buy. That’s because when you bid on a property at auction – you are committing yourself to the purchase. If you’re the lucky bidder and the hammer has fallen, you’ve exchanged and bagged yourself a property at the hammer price. It’s that simple.
Well, it is – if you have done your homework and know what’s what about a property before you bid. And that’s the key part where so many people go wrong when buying property at auction: they don’t do their homework.
People forget, overlook and just plain ignore all the stuff that needs to be checked before buying a property. I talk with many people who claim horror stories having bought property at auction. But for the most part, the mistakes were avoidable – the property should have been viewed inside and outside before buying, the legals should have been read and preferably checked by a lawyer and, the finances should have been sorted before committing to purchase. Tick off these key things before you bid and buy property at auction and you’re pretty much set for success.
But, have you thought about googling the address of the property you’re thinking of buying? I’m not just talking about checking out the latest house price stats or the crime rate of the area – I’m talking about the actual google results linked to a property.
The results can be surprising.
And I can’t help but wonder if the bidder of Lot 18 at Harman Healy auction googled the address of 78 Lyndale Rd, Coventry before auction. If they did, they have may been startled to find a YouTube video linked to the address – and a Buyer Beware public announcement warning. And, even for a property being sold at auction – that’s a surprising find!
The video claims the property has been stolen from the lawful owners and that any potential bidder may find themselves as defendants in a claim for fraud – which is a different take on ‘getting more than you bargained for’!.
And for anyone who didn’t see the YouTube clip prior to auction, the alleged owners were in attendance at the auction room to state their position and make it clear to anybody who intended to bid. Given the threats of legal action plus the proceedings and bidders being filmed – I think it takes the notion of ‘buyer beware’ to a whole new level.
Despite the warnings, the property sold for £56k (a colossal drop given £108k was paid for the property in Dec 2006).
Time will tell what happens next. However, it seems the little-known topic of Void Mortgages could be gaining traction.
In the meantime, the key lesson from this auction lot is to do your homework: google the address beforehand- because you never know what surprising secrets a property may be hiding!