Tyser Greenwood urges caution at auctions
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The firms says buying at auction has become more popular in the current climate as purchasers feel they can pick up a bargain with prices and sellers rush to secure a sale on their property quickly.
But Roger Russ, operations director at Tyser Greenwood Surveyors, says: “The general advice seems to be that an Royal Institution of Chartered Surveyors Homebuyers & Valuation survey is all that is required. This is probably fine for many of the re-possessions in the auctions as they have been lent on, often in the not too distant past, but some auction lots will be there because they can’t be sold any other way due to structural problems or other issues, e.g. type of construction.
"Obvious construction or mortgagability issues such as pre-cast reinforced concrete would be apparent to a good surveyor without the need for even a Homebuyers report, but some more serious issues may not make the property suitable for the Homebuyers type of inspection.
"Good advice would be to get an initial appraisal, along the lines of a mortgage valuation type of inspection and, if the property is OK, then follow it up with a Homebuyers or Building Survey as appropriate.”
Whilst many auctions will be based in London or other large centres, a locally based auction but with lots for sale outside of the local area of the auction is also a potential concern.
Russ adds: “Dangerous I would say! Lots may well be in an auction outside of the area because of local problems that buyers in that locality will be aware of, so it is always prudent to get sound advice based on local knowledge from an experienced surveyor.”
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