Buying real estate at auction can be a daunting but exciting process. For both investors and home-buyers alike, the timely, efficient process and the opportunity to add value to a property are enticing. Here are eight factors you should consider when buying a property at auction.
The first factor you need to consider when purchasing at in-person or online house auctions is how the auction process works. Get educated on the details of bidding, legal packs, property particulars and exchange and completion before attending your first auction day as a buyer. In fact, it’s useful to attend at least one auction as a spectator so that you can get a feel for how it works.
The next factor you will need to consider is the properties that are available at auctions local to you. Real Auction has a wide variety of properties available to suit a wide range of people. Whether you’re after land, commercial property, residential property or a combination of any of these, Real Auction will have something for you.
Many different people choose to buy property at an auction house for many different reasons. Whether you’re an investor looking for your next cash-flowing deal, or you’re buying a new home to fit your growing family, there will be options for you at auctions up and down the UK.
When looking at auction properties online, take a look at the details provided with it. A floorplan can tell you a huge amount of information, as can property photos and descriptions. The guide price can be used to determine whether a particular property will be within your budget, and the photos will give you an idea of how much (if any) work needs doing.
Another factor you’ll need to consider when buying a property at an auction house is the professional opinions you’ll need to get. It’s crucial that you seek the advice of an experienced solicitor, surveyor and contractor when deciding whether to bid on a property.
You’ll need to know that the property will work for you financially, and have an idea of the work that you’ll need to carry out. You’ll also need to be clued up on the legalities of the purchase.
When purchasing a property at in-person or online house auctions you’ll also need to factor in viewings and open houses. It is recommended that you view an auction property that you’ll be bidding on in person to fully appreciate the scale of the property and any renovations that will be needed. Make sure you factor this in if you’re not local to the area or if you are an overseas investor.
An auction house, such as Real Auction will have a knowledgeable member of the team on hand at viewings and open houses to field any questions you may have about the property or the process of buying it at an auction.
A crucial part of the auction process is funding. Due to the strict nature of buying a property at in-person or online house auctions, you need to have the appropriate funding in place before you even consider bidding. This might be a mortgage, loan, private investor funding or cash.
Whatever it is, it needs to be ready to go on auction day. If you are successful at bidding you will need to have a deposit (minimum 10%) readily available to pay on the day. Once the hammer falls you will not be able to change your mind about the purchase!
Having a plan in place before bidding on a property is vital. Not only do you need to have a maximum bid in mind, but you also need a plan for how to pay any extra costs such as stamp duty, auction fees and solicitor fees.
Failing to have a plan could mean that your purchase price exceeds what a bank or individual is willing to lend you, resulting in a shortfall. Once the hammer falls you are obligated to buy the property at the price you have offered.
The last factor you need to consider when buying a property at an auction house is what is required of you on the day. Keep on top of any last-minute changes to lots and any pre-registration requirements with the auction house.
Get to the auction early so that you have a good view of the auctioneer, and so that they have a good view of you! Check with the auction house which documentation you will need to make a purchase; most of the time you will need at least two forms of identification displaying your address and/or photograph.
Real Auction makes buying a property simple, transparent, and efficient with no hidden surprises. Whether you are seeking a new home, investment project, commercial property, or land we have thousands of options to choose from. Our platform facilitates the entire buying process from online viewings to bidding and buying. You can search for future property auctions on our website or by contacting our team.