Tips for buying at commercial property auctions

by Jonathan Adams

If you are looking for commercial property auctions, make sure you have done your homework:

Obtain a copy of the auction catalogue for available deals: Work out how much you can afford and find out about finance. On auction day, if you are successful with your bidding, you will be required to deposit 10% immediately and the remaining within 28 days.

Therefore it is important that you have a Finance Agreement in Principle in place before bidding at the Tips for buying at commercial property auctions.

Arrange a viewing: Make sure you take time to visit the property and gather first-hand information about the property so that you know exactly you are buying. Many properties sold at Tips for buying at commercial property auctions require maintenance and repair work and you should visit it before hand to satisfy yourself of its condition.

Arrange a survey: Whenever you buy a property, it is advised that you obtain expert advice from a professional Chartered Surveyor to assess its condition. Although you will be able to see some issues for yourself, a trained eye will see more and pick up any structural issues or defects, which could mean saving thousands of pounds for you.

Consult a solicitor: Consult a solicitor and seek advice before committing to buying a property at Tips for buying at commercial property auctions. You and your solicitor should always carefully read through the important information contained in the property’s legal pack.

Make an offer: Some vendors will commit to selling their property prior to auction day so it is worth making an offer beforehand.

Have some properties as fall back option: Have some properties as backup in case you miss out on your priority property. It is a good idea to identify some other properties in the catalogue as well which meet your criteria. Make sure they fit your pocket and that you arrange to view each of the properties beforehand from inside and outside.

Ask questions: If there is anything you are unsure about, contact the auction house. Never hesitate to enquire anything which you feel you should know before bidding.

Be clear in your bid: Bid clearly and always stick only up to the amount you can easily afford. As the auction room is generally very busy and noisy, it is important that you bid in a way which is clearly understood to ensure you are identified and capture the attention of the auctioneer. Make sure you are doing everything right because when the hammer falls, a binding contract is formed and you must pay the balance in full within 28 days.

If the bidding goes beyond the amount that you can afford, stop bidding and concentrate on the other properties in the catalogue.

Go prepared: Remember to take your personal ID and cheque book to the auction because you will need them as soon as you are successful. If you win, you will be asked to produce your diving license or passport, and write a cheque amounting to 10% of the purchase price.

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.

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