Tips - Buying A Property At Auction

In recent times more and more people are deciding to purchase property at auction. One of the main attractions of doing this is that you avoid the conventional drawn out process of house buying; the decision of whether you have successful purchased the property is decided in a matter of minutes; as soon as the auctioneers hammer falls.

If you are new to the routine of purchasing at auctions it is advised that you go to one or two auctions purely to just sit and watch the process take place so that you know exactly what to expect when you come to bid on a property.

It has been said that you could save up to 40% on a property by buying it at auction. There are however a few unwritten rules that you should abide by when it comes to buying your property at auction. The reason these unwritten rules are advised is because they will make the auction process a lot smoother and will avoid you making decides you don't want:

• Don't buy a property before you've sold yours i.e. before the completion has happened. This is of course assuming you're relying on that sale to buy at the auction.

• Don't buy a property without having had a survey done. Not only will you limit the potential nightmare of building problems but you'll also have a basis on which to bid, as well as knowing your mortgage limit and how much of a deposit you'll need.

• Always set a price limit on a property. Juts because someone is bidding higher than you doesn't mean that the property value has gone up.

If your bid is successful on a property you are legally bound to buy the property and will need to put a down payment deposit there and then of 10% of the property's price. This brings me to my next point; aspects that you need to bring with you to the auction house. You should take your brochure from the auction house and your personal details as well as the name of your solicitor and their address and contact phone number. Remember it is important that you phone the auction house before setting out to ensure that the property you want to bid on hasn't already been sold prior to the auction and that it also hasn't been withdrawn.

Below are some pieces of advice for things you should do before going to the auction house:

• Obtain a brochure from the auction house and read the details thoroughly and identify the properties you are interested in.

• You should arrange a viewing of the lot(s) that you are interested in, viewing arrangements for the property will be listed in the catalogue. It doesn't matter how many you view as you should view any properties you are interested in.

• Always get legal or professional advice from a solicitor and, in appropriate cases, a chartered surveyor.

• Make financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days.

You should be aware that buying a property at auction is a legal binding commitment that carries the same legal implications as a signed contract.