How to Buy a House at Auction
Buying a house at auction is a great way to get a good price and find something affordable. Many houses that go to auction need some TLC or additional input in terms of redesigning space, but if you are up for a challenge and want to create something that reflects your design goals, this is a great way to do it. Check out our top tips so that you can buy your auction property with ease!
Research Any Property That Takes Your Fancy
Taking the time to research the properties up for auction and the auctioneers that provide sales is important when choosing who to go with. It is also important to note that most auction catalogues are only published four weeks before the date of sale So, you will need to become good at checking them out quickly to give you enough time to explore any specific places that interest you.
Organise Viewings Before the Auction Date
Once you have trawled the auction guides and found a property that you like, contact the auctioneer to arrange a viewing. If the property will need a lot of work, then it is a good idea to take a builder with you or someone that can help you work out whether the investment is worth it or not. Failing to view a property can result in financial loss, and so it is essential that you check out any property you like before placing a bid.
Get a Copy of the Auction Particulars
Whilst the auction catalogue will provide you with an idea of what is for sale, the auction particulars will give you a fuller picture of the property you are interested in and can be requested from the auctioneer. If you find that the legal information lacks searches, then get these done before the auction date and make sure to ask your solicitor to check for loopholes, covenants or issues that may cause you more hassle than you had considered.
Decide on Your Budget
The thrill of bidding can result in the downfall of many auction-goers, and so it is important that you decide on your budget before the big day and then stick to it, even if you are tempted to go over! When working out your budget, think about the cost of the property plus any work that will need to be done to get it up to a liveable standard, rather than spending all your cash just buying the place.
Have Your Finances in Place
Before you can buy at auction, you will need to have your finances in place in case you are successful. You do not need to be a cash buyer, but you will need to arrange any finance swiftly after the sale and have a deposit in place and ready to go. From traditional mortgages to auction finance, make sure that you check out all lending options before making your decision.
How Auctions Work
Finally, take the time to read the guide to auction etiquette provided by the auctioneer so that you act within the rules and achieve the outcome that you want to get. If you are new to auctions, it is worth visiting a few before you are ready to buy so that you are aware of what happens. Finally, take the time to read the guide to auction etiquette provided by the auctioneer so that you act within the rules and achieve the outcome that you want to get. If you are new to auctions, it is worth visiting a few before you are ready to buy so that you are aware of what happens.
When you are ready, we can provide you with a free, no obligation conveyancing quote from our panel of leading solicitors.