Purchasing a house at auction can be possibly profitable and exciting. It helps people avoid the lengthy buying procedures which people often have to endure and the risk of things falling through at the last moment. At property auctions, when the hammer falls, the property is yours. However, this must not be undertaken lightly and research is important for this.
Finding a Property Auction
It is important to know where and when there is a property auction. This can be done by scouring the real estate magazines and papers or by talking directly with local real estate agents.
Searching for the Right Property
After finding an auction, the next thing to do is to study it. Having the right knowledge of the catalogue list before going to an auction is important. Although you might be lucky some times as you go on instinct, it is better to be ready.
After identifying the homes you are interested in, get in touch with the auctioneers and set a viewing schedule. Just like purchasing any property, it is better to have more than one viewing since you have to know about all facets of the home if you think about bidding. Usually, auction homes are in a poor condition so it makes sense to take an architect or builder with you to know what can be carried out to the house and the amount it could cost you. Additionally, it is imperative to keep in mind that time is gold. There is often 4 weeks between the auction catalogue’s publication and the auction so you need to act fast.
You have to conduct research thoroughly and make a comparison of prices and the property’s condition to similar others or to those that are likely to be for sale with local agents. You can expect to find that the auction homes’ guide price is set low to attract bidders. Thus, you need to remember the property’s true market value and make the right bid.
As you express an interest in homes to the auctioneers, you will have to read a legal pack. You need to digest this thoroughly and when in doubt, allow your solicitor to check this out. This could have specific legalities or covenants that could have possible complications on the property’s value. You may have to conduct land and property searches by yourself if you have any issue.
Arranging your Finances
It is also important to make financial arrangements before the auction. You need to have a deposit of 10% on auction day and have the remaining 90% within 28 days. In case you need a mortgage, try to discuss all financial implications with a building society or bank and arrange a mortgage price.
Preparing for the Auction
During the auction day, make sure you are prepared. The entire auction process can be really daunting and people must run a dummy run and be at an auction as a spectator before they go to one to make a bid. actually, there is no need for you to be there personally since you can make a bid over the phone. But it is recommended to feel the auction room’s buzz and look around and evaluate the competition.