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ensure that the property you want to bid on hasn't already been sold prior to the auction and that it also hasn't been withdrawn.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.
When it comes to buying property there are several ways in which this can be done. The most obvious and common of which being through your estate agents. However in recent years many people are turning to swap ways of getting their dream property, one of which is the option of buying you property at auction.
When thinking of an auction you start to picture antiques and painting being sold, the fact that you can bid on a property or piece of land hardly ever comes to mind first but statistics show that 90% of cheap property is sold through auction.
The type of property that you can buy through auction can be anything from houses through to unused shops or even warehouses. Most of the property that appears at auction is merely just the shell of the property meaning that the interior will need restoration to turn the property into your dream home or business. For more details www.auction- entrepreneur-kit.com .This should especially be noted within older property; you should anticipate anything from it.
Although, unlike an estate agent, you don't get as much choice of property at an auction, you do get something that is a little bit different and a property that has its own exceptionality. Properties that appear at auction will more than likely require a form of renovation which is why it is highly important that if you do decide to pursue the idea of buying a property at auction then you must be prepared with a clear knowledge of exactly what you want from your property.
It is really tempting to go to an auction and purchase something that doesn't fit your needs or requirements. You need to make sure that you don't purchase something from an auction for the sake of buying. This is why before you visit an auction make sure that you decide the sort of property you want i.e. number of rooms, location and size of property as well as setting yourself a budget of how much you are intend on spending whilst at the auction. For more details www.mining-auction-gold.com By sticking to guidelines such as these you will stop yourself from attempting to take on more than you can handle. You should also research into what certain auctions are going to be holding; not all of them will be submission property for you to bid on. Preparation and planning will ensure that you get what you need from the auction.
If you do decide to go ahead and purchase property
from auction then you need to ensure that you have the time and money to make any necessary repair work that may need to be carried out such as plastering, electrical re-wiring or any plumbing work that may need doing before the property can be used. This renovation work can be very time consuming so it is important that if your property is going to be used as a home, that you have an alternate form of accommodation until the work is completed.
Just ensure that when you buy property from auction that you plan and prepare for every possibility as it could be the line between success and failure.
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