The thrill of the auction and how not to get carried away…
TV programmes may have brought the world of property auctions to the attention of many of us. The atmosphere, the anticipation and the opportunity to take immediate possession may all be part of the excitement, but how do we avoid getting carried away and making a mistake?
Is there a fool proof way to buy at auction without taking a huge risk?
Yes, provided that you approach the process in the right way - in fact, you may even get a real bargain.
Whilst EHL Conveyancing can’t guarantee that you won’t give in to the temptation of making ‘just one more bid’, we have some useful tips to make sure that your auction experience is a positive one!
The EHL Guide to Buying at Auction
Prior to the auction, make sure you do your homework: -
Make sure you find out about the area where you want to buy. Even the biggest bargain ever can turn out to be a bad move if neither you nor anyone else would actually like to live there!
When certain, contact local auction houses about regular auction dates and how to receive the catalogues in advance.
At EHL Conveyancing we would never recommend buying any kind of property without at least one viewing. Take time to inspect the building and its surroundings and note anything of concern.
Remember - although auctions offer a quick sale, you have the ability to ask the auctioneers about anything you feel you’d like more detail on.
3. TAKE ADVICE
If the property needs significant repair, ask a builder to come along with you to advise you on the extent of work required and what the likely costs might be.
You can use this information to decide on your bidding limit and get a better idea of the timescale involved in making the property habitable.
4. READ THE DETAIL
Probably the biggest, and most costly, mistake made by those who buy via auction is failing to obtain, and wholly digest, the legal information relating to the property.
As well as containing any past searches, it will highlight any peculiarities with deeds etc. which could affect your decision to buy.
5. SET YOUR BUDGET
You probably already have an idea of how much you are willing to spend, including any work which the property might need, but make sure that you include every element of expenditure.
There will be costs added by the auction house on top of your agreed price (check these out in the Terms & Conditions) and you may also have costs associated with any finance you arrange.
That’s it, you are ready! On auction day however you still need to think about a few additional things. Make sure you arrive in plenty of time to hear any updated or additional information, make sure your bids are clear to the auctioneer and make sure that you have your forms of ID and deposit ready (usually 10%) for when your bids are successful!
If you would like to find out more about how EHL Conveyancing can help you find your route to a quick sale, even during this current pandemic, then visit https://www.ehlconveyancing.co.uk.
The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.