Buying a property at auction makes the process of buying more exciting and saves finances, time and effort. There are no more long queues and unnecessary efforts involved in the process when buying a property at auction. The whole process of buying a property at auction is easy, quick, economic and transparent which adds to the joy of owning a new property.
Depending upon your luck on the day, you could pocket a really lucrative deal. Contrary to what many may imagine, the process of buying a property at auction is not difficult at all. One stroke of luck could make you the owner of a mansion and effortlessly so! But, for this, you should have done the groundwork and be prepared for things to come. And, this requires a few steps on your part.
1. Find properties for auction
Identify the property you want to buy. Buying a property at auction requires in-depth research and visiting the property. Viewing a property does not require any registration. For buying a property at auction, you have to only check with the auction team that the property has not been withdrawn or sold.
2. What to do for buying a property at auction?
You are required to obtain the legal pack before the auction begins. It can be downloaded from the auctioneer’s website. It is better to have a surveyor access the property which can be arranged by contacting the auctioneers. Buying a property at auction is easy as you can also avail finance services which are available in advance to pay for the period when you win the bid and the time when you have to make the payment.
3. How to bid for buying a property at auction
It is always better to attend the proceedings of the auction house personally instead of proxy bidding when buying a property at auction. You have the option of attending the bidding process through a number of other ways which include via the Internet or telephone. Pre-registration for buying a property at auction is not required if you are bidding personally.
4. How the bid ends?
At the auction, the auctioneer announces each lot and invites bids. You can make your bid by raising your hand in a way that the auctioneer sees it clearly. Buying a property at auction ends with the highest bid. Whoever bids the highest becomes the new owner of the property.
5. The rule is simple – if in doubt, do not bid
It is strongly recommended that when buying a property at auction you should be very sure regarding what you are bidding.
6. Completing the procedure
If you are successful in buying a property at auction, you will be required to fill out a purchase slip. You will have to produce your identity card and pay 10 per cent of the selling price as non-refundable amount as well as an auction administration fee.
The deal is completed in 20 working days in the presence of your solicitor and the property changes hands.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.