A beginner’s guide to buying a property at auction

October 18, 2021 2:53 pm

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Buying a property at auction can be exciting and you could get yourself a real bargain. There are a few things to look out for though. You don’t want to get a bargain and then realise that the house needs so much work it’s not the bargain you thought. On the other hand, don’t get stuck in a bidding war and realise you’ve ended up paying far more than you set out to do.

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Here’s a few things to consider before going to the auction:

Research

Have a look at the auction catalogue and list any properties that you’re interested in. Contact the auctioneer and arrange to visit the properties. Be prepared to accept that these properties will need lots of extra work, that’s why they go to auction. It’s useful if you can take a builder or architect with you to get some idea of what needs to be carried out and how much it will cost. It’s worth going to a few auctions first to find out how they work.

Consider a survey

It’s worth considering getting a survey done of a house if you’re very interested in it. For those in the Nottingham area, choose a local business who can arrange a home buyers survey Nottingham offers lots of experts who can arrange this for you. You can look online for someone to arrange this survey, try someone like Sam Conveyancing where you will be able to leave your details and get an instant online quote to see how much this will cost. Remember that it’s worth paying the most you can afford to get the most detailed survey as it may pick up on problems that could be expensive to put right.

Get your finances in order

If you’re the highest bidder in an auction, you’ll be asked to pay the deposit on the day and you’ll need to pay the balance 28 days later. Make sure that you have your finances in place to be able to do this.

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Learn about the process

Do some background reading on how to buy a property at auction and be clear about how the process works. There’s lots of information online that will give you tips and advice on the best ways to go about it: https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/how-to-buy-a-house-at-auction/

Stay calm

When you’ve decided on the houses that you’d like to bid on, get to the auction house early and stay composed. Set limits on your upper budgets and make sure that, if you’re bidding, you’re prepared to go up to a certain price at which point stop bidding and don’t get carried away.