8 Top Tips For Buying Property At A Auction
With property auctions increasing in popularity over the last year and a half, it is important that you acquire a firm understanding of how this unique property investment niche works to ensure you get bargain deals.
1. Find a property auction
The best property auctions to attend are run by Allsop, Jones Lang LaSalle, Colliers CRE and Savills and are regularly held all over the UK. To find your next property auction, browse through property magazines, newspapers and on property websites such as Essential Information Group. They will provide you with a list of all upcoming auctions as well as give you details about each of the properties they are selling.
2. Get a catalogue
Auction catalogues are usually published up to 4 weeks before the event. Make sure to get one of these so you can examine all the properties up for auction.
3. Arrange to view the property
Should you find a property in the catalogue that you are interested in buying, use these 4 weeks to arrange 2-3 viewings of the property to see if it is a worthwhile investment. Similarly take the time to research its profitability and assess how much it will cost to renovate.
4. Get professional advice
Before you go to the auction, get a surveyor to view the property. They will be able to help you determine exactly what you are getting and finalise if it is worth the investment.
Now if you haven’t got £500 to pay for a full surveyor report, get a builder/surveyor to walk through the property and supply advice.
In addition, make sure you have got a solicitor lined up who can help you complete on a purchase, and get them to review the legal pack for the property.
5. Arrange your finances
Once you buy the property, you will immediately have to put down a 10% deposit. You will then have 28 days to pay the remaining 90%.
Because of this, should you want to get a mortgage on your property you will need to make sure you have arranged a mortgage in principle with your lender by getting them to do a formal valuation of the property.
6. Make further preparations
Before you go to auction take a look at their previous auctions to see how well properties sold for. In addition, try going to a few property auctions to learn the game and get a feel of how they work.
If you are feeling more daring, also try writing to the property owner and expressing an interest. In this letter you can put down a bid and also ask them to inform if the property is sold before the auction has happened.
7. On the day
Make sure you have a look at the addendum sheet on the day of the auction as this will show you any changes/mistakes that have happened since the catalogue was published. Also, listen to any announcements made by the auctioneer in case anything important is announcement.
8. Bidding at auction
It is easy to get caught up in the mood of the auction and pay too much for your property. For this reason, make sure you go to the auction certain of which properties you want to buy, how much you think they are worth and how much you are willing to pay.
9. Follow up on unsold properties
Should your property fail to meet its reserve price, don’t be afraid to go to the property owner and put in a direct offer.
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- Fancy Bidding For Property Online?
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- Does Property Size Matter?
- New Initiative Offers Property Investors Protection Against Squatters
Tags: property auction, property investment, property owners, property website
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