Property auctions are well-known for developers and investors grabbing a quick bargain, but they are coming more and more popular, as people are starting to learn they aren’t all about cut-price properties. Nowadays, everything from huge mansions with acres of space, to studio flats in bustling busy cities are all available at auction. Buying a property at a house auction is exhilarating and exciting and cuts out all the lengthy and complicated purchase procedures. Here are my top 9 tips for buying at a house auction:
- Find the right property
Never take purchasing a property lightly, and always take your time to really think about your decision before you jump in. Do thorough research to make sure you are choosing a property that is worth the money and exactly what you want. A lot of people with often make a big in the spur of the moment, which can seem like a brave move, but can result in a big loss if you haven’t done thorough research.
- View the property
Once you have found a property you are interested in, try and view it to give it a thorough inspection. Auction properties can quite often be run down and in a bad state, which is often why they are available for such a low cost. Try to get an expert opinion from a builder or architect before making any final decisions and bidding at house auctions. Check out this guide on what to check when viewing a house.
- Legal matters
Once you have shown your interest in a property to the auctioneers, it is vital to look into any legalities that may impact the value. It is essential to go through the proper legal procedure, which can often be quite complicated to fully understand. If you are under any confusion, then make sure to consult with your solicitor.
- Arrange your finances
This stage is probably the most crucial, as you need to make financial arrangements before a house auction. Often you will be required to make a 10% deposit on the spot after winning a bid, and the remaining 90% within the auctioneers proposed time frame. If you a short on funds, there are plenty of finance options available to help you out before the auction. This is a comprehensive guide that explains property auction finance.
- The house auction
Some people find being at auction exciting, whilst others can find it intimidating and overwhelming. When your day at auction comes around, stay calm and arrive early. Make sure you have everything you need with you, like identification documents such as a passport or drivers licence to confirm your eligibility as a bidder.
At the auction you might face some tough competition, and some people bid extremely high amounts which may come across as quite intimidating. Be careful not to get carried away and bid outside of your budget, or on a property you haven’t previously researched thoroughly.
- Finalising your purchase
Once the bidding is over and you have won your dream property, it is time to go through all the relevant terms and conditions. This is just to make sure there is no risk involved, and no catch regarding money or legal terms. Once all the documents are signed, the property is officially yours.
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