Buying at auction

Property auctions have become more and more popular since their introduction on day time television. There are many reasons why people consider buying or selling at auction; they may be looking for a quick move, or looking for a plot of land for self development, reduced priced repossessed properties, or experienced property developers looking at the huge variety of peroperties on display at any one time.

There is no doubt, it is challenging times for the buying or selling houses at the moment. However property auctions are a market where great deals can still be made. Buying at auction can present an opportunity to pick up properties at competitive prices for those with a keen eye for a deal. However it is important to do your homework well before the auction date. Follow our top tips below for buying success at the auctions: -

• Reseach the property: Inspect the property thoroughly, if you are worried about the structure then instruct a surveyor to conduct a full structural survey. Check out the neighbourhood, and ensure its suitable for your market requirements i.e. if for a family check the schools, traffic on roads etc. Look up the price similar houses actually sold for using the web for example the 'house price' pages on rightmove.
• Read material: Ensure you read all written material provided by the auctioneer, the legal pack and Home Information Pack and seek advice if you need anything explaining. Understand the terms and conditions of the auction.
• Instruct a solicitor: You should instruct a solicitor to report on the title documentation and searches to ensure there are no major problems with the property.
• Finance for deposit: Ensure you have sufficient funds for the deposit, this will need to be paid at the auction once the hammer falls on your successful bid. Often the deposit is 10% of the sale price but you should check the deposit before the auction. Also check which methods of payment are accepted.
• Finance for completion: Make sure you have sufficient funds available for completion time (sepecified in the auction terms and conditions, conditions of sale). If a mortgage is required, an unconditional mortgage offer should be obtained prior to the auction and you should check with the lender that funds will be in place for the completion date.
• Set your limit: It is important to set your limits on the amount you are willing to bid on a property, it is very easy to be caught up in the atmosphere of the auction and to bid higher than you wanted. You should be head driven rather than heart driven when making your bids.
• Bid clearly: If you are going to bid at an auction, make sure you bid clearly.

The day of the auction you will be required to register an intention to bid. If your bid is successful the sales memorandum will need to be signed and the deposit paid in full there and then. You will normally be responsible for the insurance of the property from the moment the gavel falls.