Property for auction is potentially profitable and there are following steps involved:
1. Aware of the property and its location
It is important that you stay updated about the properties being advertised through a number of media such as real estate magazines, newspapers and keeping in touch with the local real estate and property agents.
2. Narrowing-in on the property which best suits your purpose
In case of property auctions, remain updated with the material such as catalogue. It is important to know what is there in the catalogue by going through it in detail. It is advisable not to depend on your emotions but study the property and then only visit the auction so that you are able to make the right decision.
3. Survey properties
Make sure that you survey the property before bidding. It is very important that you are familiar with every part and aspect of the property before you even think of bidding. For this, you can even take the assistance of professionals such as architects. It forms a crucial part of bidding to view the property beforehand because any property up for bidding will most probably require renovation, and may be, lot of it. By doing this, you will know the cost involved and will be able to bid accordingly.
4. Do your homework on the property you intend
Do your homework in detailed way so that you have the knowledge of the cost of similar other properties in the area. The real estate agents in the area will help you for that. By having an approximate figure for the local properties, you will be able to bid the right figure.
5. Legal aspects
Attending to the legal aspect is crucial. Make sure that you go through the legal pack. A better idea will be to take legal advice and consult your solicitor before you proceed. It is important because some legal aspects can have implications, and it is always better to be free of any doubts before the bidding process begins.
6. Keep finances ready
Be prepared with finances because you will not have time once you are successful with the bidding. You will have to pay 10 per cent of the amount of money at the same time in the form of deposit and the remaining in the coming 28 days.
7. Rehearse your moves
Do dry run. Visit some of the auctions, preferable in the same area where you are looking to buy your property. This will give you an idea about the bidding process if you are a novice.
8. The auction
Visit the auction site and register. So, bring with yourself your identity proofs and off course, the amount of sum to be deposited in case you succeed (amount will be required only if your bid succeeds).
Stick to your ground. Be sure not to exceed your budget and pre-set sum which you intend to invest in the property however lured you are into it.