8 Tips for Buying a Property at Auction?

Buying a property at auction is a great way to grab a property fast, and could potentially save you thousands of pounds in the process. But you can only really enjoy these benefits if you know what you are really doing, before you go to the auction. With this in mind, here are some tips we think you will find useful, if you are interested in buying a property at auction.

Auction hammer

Do Your Research

Choose the area where you want to buy the property, then contact a local auction house to get the latest information about the upcoming auctions and buildings available for purchase. They will add you to their mailing lists and share all the latest news and catalogues.

Inspect the Properties You Have Shortlisted

Once you have shortlisted properties you are interested in, ask the auction house to arrange viewings. Check the floor, roof, paint, windows, doors, and every other thing that you consider important.

When inspecting the building, don’t forget to check the surrounding neighbourhood as well. After all, no one wants to spend thousands of pounds on a home, and then regret having poor facilities nearby. If possible, take a handyman with you who can inspect every little detail of the property.

Get the Auction Particulars

Auction particulars contain details of property location, land restrictions, zoning, etc., that you must be aware of before you invest in a property. You can also request legal documents to get more details, and properties listed for sale often come with legal packs. Ask your solicitor to thoroughly examine the documents, and see if the written information matches what the auctioneer told you, or if there are any hidden loopholes.

Make a Timely Decision

It is good to take your time to inspect different properties before buying a property at auction. In saying that, it is important to be aware of the fact that auctions usually take place a month after the publication of their catalogue.

Stay Informed

Request for the auctioneer to keep you informed of any changes that are made to the auction date, or if a property is being sold before the auction date. Don’t risk losing the chance to buy your chosen property due to an administrative mistake.

Check Payment Methods and Set Your Budget

Ask yourself, ‘how much money can I pay for the property?’. Then set your budget according to your answer, and stick to it. Get your finances in order before the auction date. Learn about the payment methods and deposit requirements, so you can arrange payments accordingly.

Read the Terms and Conditions of the Auction House

Learn about the conditions of sale, what you need to pay in advance, or when you are supposed to deposit full payment. Read all the terms and conditions of the auction house before you bid for a property at auction, to ensure there are no nasty surprises.

Arrive at the Auction Early

It is better to be at the auction before it starts. That way, you will be able to learn straight away of any changes made to the property lot, or if there is any new additional information that was not announced earlier.

We hope you find these tips helpful. Good luck bidding for a property!