Buying a house at an auction differs significantly from the traditional buying process and can be a new and exciting experience. However, you must be well prepared for the task to make sure you win the bid at less than market value. Keeping a few important factors in mind, you can make the most of an auction and buy a good property.
Finding a property auction
Property auctions are held across the country, you can find auctions in your local area online as well as in the newspaper and property magazines.
Request a Catalogue
Catalogues provide details about the properties up for auction and are normally available a month in advance. You can easily browse through a catalogue and list the properties you are interested in.
Select a property and schedule a visit
While the catalogue will be listing details of all the properties up for an auction, it is essential to inspect the buildings yourself before the auction. If you made a list of the buildings you like, you can get appointments and arrange viewings. It is also a good idea to take a builder along with you to get advice on the property’s market value and any other issues it might have.
Get professional advice
Besides a builder, you should also take a surveyor with you to inspect the property thoroughly so that you know exactly what you are planning to buy. However, bear in mind you will lose the money spent on surveyor’s report in case you lose the bid.
Get your finances ready
The winner at the auction has to pay a percentage of the total price of the building immediately; otherwise the bid is declared void and a new round of bidding starts. After paying the deposit, you will be required to pay the remaining amount within a month’s time – so make sure you have your finances ready to secure the deal.
On the day
Read the addendum sheet available at the auction. This sheet reveals any mistakes or changes in the catalogue that was initially published. You also need to listen to the announcements made by the auctioneer before the auction starts.
The atmosphere and excitement of a property auction often lead to people paying much more than they should. It is very important to keep your emotions under control and stick to the maximum limit you have set for yourself.