Buying a new home at an auction can be draining for the first-timers, but with a bit extra effort, it can be a great step on your way to your dream of owning a property.
How to get started?
1. Do your homework
As you step into the world of property, the first and foremost thing is to be armed with knowledge. Do your homework; gather as much information as you can; signup to the newsletters and mailing lists of the property houses located in the areas you are intending to buy your property at, surf the Web for the auctioneering websites and download the legal packs of properties which you like.
2. Go for experience.
Find and contact those who have been through the process already. They may have something to pass on. You will share much time and resources by avoiding things which might not have gone quite right for them.
3. Have a dry run
Visit auctions just for having an experience before going to an auction where you actually intend to buy a property. Get yourself familiar with the auction environment by visiting them in advance. You will know how things work there and you will be better armed for your purpose.
4. Find a mortgage
Try arranging a mortgage early. Having a mortgage before finding a potential purchase will be preferable. Have a mortgage agreed ‘in principle’ to have a budget and know how much you will be able to afford. Make sure that the lender completes within 20 days as this is required for the auction process. You will be able to bid with confidence as you will know that you have the back up. This will also speed up things when you make the winning bid.
5. View the property and appoint a surveyor
Visit the property personally. Visiting the intended property at different times of in a day will give you a better idea about the property. This way, you will also be able to compare it with the description given to you by agents and the information you have gathered online. Hire a Chartered Surveyor to identify any structural problems and help you in knowing worth of the property to help you know your maximum bid.
6. Appoint a conveyancing solicitor
Hiring a conveyancing solicitor is important who will be able to examine the legal pack to make sure that the property is marketable and will not have issues when going to be sold. Do not miss to tell the conveyancer that you are going to buy the property at auction so that they will deliver according to its specific requirements.
7. Avoid temptation
When at the moment, you may be compelled to go in for just that extra – avoid the temptation. Do not let emotions run, and remember that your budges is for a purpose. Never lose sight of your budget or you may not afford the 10% deposit and lose the goal for which you visited the auction in the first place.
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.