27 October 2016
27 October 2016,

Buying a house at auction is an exciting experience – and often very lucrative too! On average, investors tend to save around 15% of the market value, which can equate to thousands of pounds.

However, house auctions are generally fast-paced and frenetic, and it’s easy to get carried away in the moment, especially if you’re not well prepared.

Here’s a guide, detailing what you need to do before you attend the property auction.

Property Auctions – Checklist

  1. Search the market. Don’t just look at the properties listed at your local auction house. It pays to shop around, and some auctions may have better property investment opportunities than others. A property investment agent should be able to help here.


  1. Inspect the property. Some investors choose to purchase the property ‘blind’, without inspecting it first. This is a high-risk strategy and best avoided. Wherever possible, get inside the property in question and examine it thoroughly. It’s also a good idea to arrange a survey of the house, particularly if you’re concerned about the structure or the boundaries of the property.


  1. Check out the neighbourhood. Look at the immediate area surrounding your property and identify potential problems. For example, if there’s a river nearby, is this house within the flood plain? If so, getting home insurance could be expensive. Is there a large tree nearby, which may have roots that are affecting the stability of the house? Is it in a good area? How many other properties are standing empty? Are there any transport links or schools close by? If you’re looking for buy-to-let property for sale, remember that tenants value amenities and proximity to the local station.


  1. Review prices. When buying a house at auction, it’s easy to believe you’re getting a bargain if the price is appealing. However, this might be indicative of the market in that area. If all prices are dropping in the location you’re searching in, you need to find out why – and try to ascertain if they’ll go up in the future.


  1. Check local sales activity. Find out how long properties in the area stay on the market. If they’re selling quickly, that’s a good sign, as it proves it’s a popular location. But remember, if they sell quickly on the general market, they’ll probably be just as sought-after at the auction, which will push prices up.


  1. Get your finances in order. It’s vital to get your finances sorted before you attend the property auction. You’ll need to pay 10% of the final bidding price or £2,000 (whichever is higher) on the day – and then pay the remainder within 28 days of the sale. If you need a mortgage, you must have it agreed in principle before bidding.

House Auctions with The Buy2Let Shop

Need help finding the ideal buy-to-let property for sale? If you’re looking for help with buying a house at auction, talk to The Buy2Let Shop today. We’re property investment experts in London, and we’ll help you with every stage of the property auction process.

You can find out more about our services by visiting The Buy2Let Shop website.

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