Information for Buyers

Buying a property at auction is an incredibly exciting, and potentially extremely profitable, way of buying a property. I just love the process; it avoids all of the normal lengthy purchasing procedures that you usually have to endure, with the risk of everything falling through at the eleventh hour. 

With an auction, as soon as that hammer falls, that's it - the property is yours. However, it isn't something to be undertaken lightly, and it definitely pays to have done some research on the process, in order to be in a position to snap up a potential bargain.

Once you've identified any properties that you're interested in, then contact the auctioneers and arrange a viewing. As when buying any property, I would advise more than one viewing as you need to be aware of every facet of the property if you are considering bidding. Very often, auction properties are in a pretty poor state, so it could be advisable to take a builder or an architect with you to ascertain what can be done to the property, and how much it is likely to cost.

It would be prudent to remember, though, that time really is of the essence. There is usually only a matter of around four weeks between the publication of the auction catalogue and the auction itself, so you have to act fast.

You will also need to make your financial arrangements prior to auction. You must have a ten percent deposit with you on auction day, and you must come up with the remaining ninety percent within twenty eight days. If you need a mortgage, it is prudent to have discussed all of the financial implications with a bank or building society, and have arranged a mortgage in principle. I have known of people that have paid their ten percent and lost the lot because they couldn't come up with the rest of the balance in time.

When you arrive at the auction, you'll need to register - make sure that you bring identification and enough funds for your ten percent. Auction houses can be pretty crowded affairs, so get there early if you want a seat! When the time comes to bid, make sure that you can be seen by the auctioneer and that he is aware of when you're bidding - don't risk any of the casual scratching of the nose type bidding that you see in the movies!

As the bidding increases, so will your heart rate, believe me. This is where you have to make sure that you don't get carried away. Try to have a figure in your head that you don't want to go over. It can be very tempting to go over budget, particularly if you've invested a lot of time and effort prior to auction, but try not to go silly. If you don't trust yourself, then you can get someone else to go and do the bidding for you.