23 October 2017
23 October 2017,
 0

The process of buying a house at auction is exhilarating; but make no mistake, if it’s your first time, it’s likely to be nerve-wracking too. This is especially the case if you’re attending a large house auction, with plenty of people present.

However, don’t let that deter you. Property auctions are the perfect place to bag a bargain, as long as you’re well prepared. Here are a few great tips to help get you ready for your first house auction.

Top Tips to Get the Best From Your Auction Experience

  • Attend as a ‘guest’ first. In this instance, ‘jumping in at the deep end’ isn’t the best strategy. Instead, attend a few auctions without bidding on anything. Sit at the back, and watch how it’s done. This will give you valuable insight into how the process works.

 

  • Prepare your finances. Paying for a house at auction is not the same as buying via a traditional estate agent. For starters, you’ll need to pay 10% of the final agreed price on the day. You’ll also need to pay the remainder within 28 days, and failure to do so can result in legal action being taken against you. If you’re planning to pay using a mortgage, you must get this arranged in principle before bidding.

 

  • View the property beforehand. Yes, the photos may make the property look like the best buy ever, but remember – some sellers are highly adept at making houses look better than they really are! As such, it’s imperative to visit in person, or at the very least, peruse the details of the property as carefully as possible. Buying blind seldom works out well, and can cost you serious money in the long run.

 

  • Get a solicitor. You only have 28 days to complete the sale after auction, so it’s a wise idea to get a solicitor lined up and ready beforehand. The last thing you want to do is hold up the process.

 

  • Research the market. Property auctions are not the place to buy with your heart – but rather, with your business head firmly in place. Ascertain whether or not that ‘bargain’ house is really as good a deal as it seems; scour the local market and find out what similar properties in the area are going for.

 

  • Don’t trust the guide price. Auction guide prices are notoriously inaccurate, and usually, a house sells for more than its listed price. Keep this in mind, so you don’t get disappointed on the day!

 

  • Stick to your budget. It’s easy to get carried away with bidding, especially if you’ve got a few people bidding against you. Stick to your guns and don’t go over your budget, no matter how hard it is to see the property get snapped up by someone else. Remember, you need to make a profit from this purchase – and going over your budget will only eat into your ROI.

The Buy2Let Shop

If you’re looking for assistance with buying a house at auction, The Buy2Let Shop team can help. We’re professional property investment agents, with years of experience in the field, and we’ll make sure you find a great house at a property auction, at a price that suits your budget.

To find out more about our services, simply visit The Buy2Let Shop website today.

Leave a Reply

Your email address will not be published. Required fields are marked *