5 Rules to Remember When Buying Property at Auction
Whilst more experienced property investors may be familiar with the tips and tricks of buying property at auction, if this is your first time (or you’re even a first time buyer!), you may not know what to expect.
So, before you put your hand up in the auction room, read on for our 5 golden rules to maximise your chances of success. Because whilst securing new property at an auction can be incredibly exciting – not to mention a big money-saver – you don’t want to bid with pockets full of cash and no clue want you’re doing.
1. Know What You’re Looking For
Hundreds of properties and plots of land go up for auction every day around the country. Whilst this means that there’s going to be something for everyone – from small regional plots to the more expensive inner-city properties – it also means you need to get clear on what it is you want to spend your money on. Go for the first thing you see and you’ll risk missing out on that dream property waiting further down the line.
You can find the latest property and land listings from auctioneers on all the usual online portals, such as Rightmove, Zoopla etc., as well as online auction catalogues. Take your time researching what the current market has to offer and of course, ask as many questions as possible. This is a financial investment you’re making and should not be rushed.
2. Visit the Property
Surprisingly, it’s not uncommon for people to buy auctioned properties without viewing them first. Don’t make this mistake! Before auction day, make sure you pay a visit to the potential property or plot that you are interested in. Many properties available at auction are able to be purchased for a significantly lower price as they are in need of some work. For this reason, you may also want to ask a trusted surveyor to take a look for you.
3. Instruct Your Solicitor – Before Auction Day
Before you turn up on bidding day, you’ll want the reassurance that everything is in order legally. Seek advice from your solicitor and share any legal documentation concerning the property with them prior to auction day. This should give them plenty of time to raise any enquiries with the sellers’ own solicitors.
4. Get Your Finances in Order
This should already be clear, but just in case, never bid on a property unless you have enough money to do so. This means you’ll need at least enough to pay the deposit on the property (a minimum of 10%) and any buyer’s fees you may have to pay on the day. After all, once that hammer goes down, the sale of the property is legally binding and you will be expected to complete within one month of the sale.
If you’re going to need a mortgage to finance your purchase, be prepared and speak with a professional mortgage adviser well in advance to get a mortgage agreed in principle.
5. Arrive Prepared
Let’s not forget the big day itself! The day of auction can be exhilarating, but there are several things you’ll need to remember if you want the best shot at success.
First and foremost, do not leave the house that day without your cheque book, as well as some photographic ID and proof of address.
By now you should also know what your maximum bid will be. Make sure you stick to this limit, no matter how tempting it becomes to spend a little more. You have a budget for a reason. When it comes to the bid, be very clear. If this is your first time at an auction and you’re not feeling confident, why not ask a trusted friend to bid on your behalf?
Finally, remember that the results of an auction are final. Do not bid unless you’re confident with your decision.
Looking to purchase a property, at auction or otherwise? Contact Amber Mortgage Solutions today for professional assistance securing a competitive mortgage rate to suit your budget. Call us today on 01702 619221.