Buying a property at auction can be a perfect way of picking up a bargain. The main attraction of buying at auction is the speed and ease it offers to buyers. Usually, house buying is a long drawn out, boring process that seems to go on forever. An auction lasts minutes rather than weeks and months. This ease can sometimes lead people to rush into deals without doing much planning or thinking ahead though. This is something to be avoided. If you’re thinking about buying your first property at auction, take note of these useful tips.
Visit the Property Ahead of the Auction
You can get a catalogue for the auction that will include the details of the properties going under the hammer. It should also include information on viewing options. It’s vital you view a property before bidding on it. The small picture that the auction house provides is simply not enough to judge a property on.
Do your research and find out why the property is going to auction. Talk to the neighbours if possible and check for any major work that might cause you problems once you’ve bought the property. You should work out the costs involved in doing repairs and updates and factor that into how much you’re willing to pay for the property.
Make Your Budget Strict
Auctions are exciting places, especially if you’re attending one for the very first time. Don’t let yourself slip into a bidding war though. I can’t tell you of the amount of times someone I know has gone to the auction with a budget and come back having spent way more than they’d planned. Buying houses for sale at auction is very exciting, so don’t make the mistake of letting yourself get carried away. It’s a lot easier to fall into this trap than you’d imagine.
Be aware that you’ll need to have 10% of the sale price ready to be paid on the day of the auction. Usually, the remaining 90% can be paid over the following month. If you need a mortgage, then make plans in advance. If you can’t make the payments in the agreed time, the property will be lost.
Visit an Auction Beforehand
It’s always worth visiting a few property auctions as a spectator before you attend the auction in which the property you want to bid on, is going under the hammer. This will allow you to observe the etiquette and general protocol of the bidding process. You want to avoid any embarrassments on the big day.
When the day comes, get a good position. Make sure you’re somewhere where the auctioneer can see you and make your bids obvious to him or her. It’s usually best to bid as late as possible and avoid putting in the first bid. Even if no one bids, you could always talk to the auctioneer afterwards and see if a deal can be agreed.
It’s also helpful if you take a friend along with you. Especially if they’ve bought properties at auction in the past. The support and guidance another person can offer you could prove vital once the auction gets underway.