Buying a property at auction comes with many perils but these are thankfully preventable by being prepared. It’s all about doing your homework and preparing yourself against any nasty surprises. To avoid being caught out and losing lots of money, follow these useful tips:
- Beware the bargain
If a property is priced lower than you would expect, there is bound to be a reason so if you’re interested, it’s vital to carry out an inspection of the building yourself before the auction. It could be that the auction catalogue forgot to mention the three-lane flyover that passes over the top of the house!
- Old properties
Old buildings would definitely benefit from having a structural survey completed to see if it’s worth investing in or not. If not, then it’s certainly advisable to take a builder along with you to view the property so they can advise on any renovations that might be required and an estimate of the costs involved. Get help with finding Conveyancing Solicitors London with a site like Sam Conveyancing who can put you in touch with trusted Conveyancing Solicitors London.
A conveyancer is a must for checking through the legal pack that comes with each auction property. They will be able to identify any restrictions or complex covenants affecting the property.
- Sort out the mortgage
It’s imperative to sort out the mortgage application ahead of the auction. There are only 28 days following the auction for the balance to paid in full and most lenders need considerably longer than this to get a loan approved. Insurance will also be required as the buyer becomes liable for any damage to a property as soon as a bid is accepted at auction.
- Check out estate agent windows
Do some research on previous auction sales and local estate agent windows for the market value and possible demand for similar properties to the one being offered at auction.
- Addendum details
Be sure to check the addendum sheet when it comes to auction day. This sheet will highlight any amendments or mistakes in the catalogue or reveal changes to information since the original details were printed.
- Highest bid
Have a figure in mind that is the maximum you are prepared to spend and can afford. Stick to this figure, no matter how competitive and tense the auction room becomes. Bear in mind that some less than honest sellers have been known to send accomplices along to the auction to push the sale price up by entering fake bids.