So you’ve seen the television programmes on buying at auction and it’s got you interested – what do you do now? For many people just figuring out where to start when it comes to buying at auction is the tricky bit. If you’ve never bought a property at auction before then try these top ten tips to make sure your auction experience is a complete success!
Find the Right Auction House and Do a Dummy Run
Many auction houses specialise in certain types of property. This way they can streamline the potential buyers who will come to the auction. Therefore it is vital that you find the right auction house for you or your journey will be fruitless! Check online to see what properties the auction house specialises in and go along for a ‘test drive’ so you can get a feel for what an auction room works like.
Know What You Want and View the Property
Auctions can be overwhelming. There are so many properties on offer and so many bids being made it can get a bit confusing. Before you got to the auction to buy have a very clear idea of exactly what you want and always view any properties you are interested in before buying! You do not want a nasty surprise once the hammer has gone down!
Set a Budget
Getting swept up in the drama of the auction room and watching other people bid on the property you want can make you tempted to bid more than you can afford. But remember, once the hammer goes down you have entered into a legally binding contract. Always set a budget and stick to it. If the property goes over that budget you just have to let it go. There’s no point bidding for something you cannot afford!
Speak to Estate Agents
They may not all have the best reputation but estate agents no the area you want to buy in so ask them any questions you may have. Find out what house prices in the area are like and what problems/issues there may be including any planning permissions.
Research the Area
Of course you should never just rely on what you’re told. Research the area yourself, speak to local resident and the local council. It never hurts to be extra sure.
Ask Friends Advice
If you have friends who have used property auctions before, draw on their experience. Ask them for advice and perhaps bring one along if it is your first time.
Always remember, location matter. You may have found the perfect property at a great price but if it is in a bad area you’re going to struggle to sell it on or rent it out. If the price is particularly low consider whether the location may have something to do with it and be wary.
If you are planning to buy a property to renovate and sell on or rent out be realistic about what you can do. Don’t take on a massive renovation project when you simply don’t have the time or the money to complete it.
Don’t Get Disheartened
It can be heartbreaking to watch the house you want be bought by someone else at auction. But don’t get disheartened. There will be other houses and your bid will be the lucky one soon enough.
Try, Try Again
Finally, if you don’t get what you want from your first auction or you don’t enjoy the experience as much as you thought you would try again. Auctions can be daunting at first but with a bit of experience you’ll soon get what you’re looking for out of them.