Buying a property at auction can be exciting and profitable. When buying at auction you can often avoid the conventional drawn out process of house buying. At auction it’s condensed into a matter of minutes rather than months and when the hammer falls, you own the property.
Here are a few points to note before you bid for a property at auction:
Finding an auction – Find an auction house for the area you are interested in and request their catalogue, bear in mind that some auction houses outside the area might also auction properties in your are aof choice. Most auction houses hold regular auction sales with a catalogue printed some weeks in advance.
Pay attention to detail – Review the catalogue carefully, read the details thoroughly and identify the properties you are interested in. Do arrange a viewing of the lot(s) – viewing arrangements will be listed in the catalogue.
Research – View and inspect any properties you are interested in. Research the property thoroughly and ask local estate agents and neighbours for their opinions, and check the description of the lot in the catalogue is accurate.
Searches – Sometimes the auction property pack wil linclude searches provided b the seller, if it doesn’t then carry out the usual property/land searches. Carefully read the conditions printed in the catalogue. Always get legal or professional advice from a solicitor and, in appropriate cases, a chartered surveyor. (We can assit you with the step just email firstname.lastname@example.org )
Cash or Mortgage? – Make financial arrangements to ensure you have a 10% deposit ready for payment on auction day. Plan ahead if you need mortgage assistance. It’s wise to arrange a mortgage in principal with a bank or building society before buying at auction. You could lose your 10% deposit if you fail to complete within the time given (normally within a month).
Please be aware that buying at auction is a binding commitment . In most cases, auction offices have copies of legal documentation provided by the seller’s solicitors which can be sent to you to review before you bid at auction. It may be worth requesting a Solicitor’s pre-auction report before the day of the auction