Successfully Buying a Property at Auction

Buying at auction can be a great way of picking up a property at a bargain price. However, if you’re not careful you could end up with a house that isn’t what you thought it was. It’s important that you know exactly what you’re doing beforehand.

Do Your Research

Firstly, you need to find a suitable auction and look through the catalogue to find details of potential properties. Think about the type of property you want and any necessary features, such as a garage or metal door canopy. It’s not a wise idea to just turn up and bid on anything that takes your fancy. You could be lucky, but it generally pays to have done some research.

Check Out the Properties

Just as you would view a property if you were going through an agent, you should also do the same when looking to buy at auction. You can arrange viewings through the auction house, and it’s a good idea to see potential houses twice so you can check through everything thoroughly. If there is a lot of work that needs doing, you should have a builder look over the property as well and give you an estimate for the costs.

There isn’t usually a great deal of time before an auction, but this doesn’t mean you should skimp on the research. Look at the price of the property compared to others that are for sale, and add in the cost of any work. Think about the maximum amount you’re prepared to bid, and ensure that you’ve read through any of the legal documentation available from the auctioneers.

Have the Finances in Place

It’s vital that you have the means to pay for the property before the auction. You’ll need to put down a 10% deposit on the day if yours is the winning bid, and you’ll then have 28 days in which to pay the balance. If you’re using a mortgage to finance the property, you’ll require a mortgage agreement in principle.

Don’t Get Carried Away

When you arrive at the auction, there is often a feeling of excitement around the place. However, it’s important that you’re not tempted to keep on bidding if it goes over your maximum limit. Keep a steady head and think carefully before increasing your bid. Otherwise you could end up paying too much and losing out when you want to sell it.