Buying a house at auction can be a great way to purchase a property. When the hammer falls, you are obliged to buy the property you have bid for; therefore, it is vital to make sure you know your facts.
Why buy at auction?
The advantage of buying at auction is that it is a fairly instant and transparent process. The sale is agreed on the day, so there is no risk of being gazumped or the vendor pulling out at the last minute; however, there is always the risk that you could lose out in a bidding war for the property of your dreams, which would also mean that you lose any money you may have spent researching and carrying out surveys beforehand.
What you should do ahead of auction day
Make sure that you read the legal pack that accompanies any house being sold at auction; in addition, it is a good idea to have a legal professional look at this.
Do your research into any properties you are interested in, as you don’t want to end up over-paying on auction day. Consider investing in a survey. Experts such as https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-Swansea can provide you with a professional report on the condition of a property to save you any nasty surprises after committing to a purchase.
A home buyers survey Swansea is an example of a report you can have done; however, be prepared to lose the money you invest in the survey should you not go ahead with the purchase for any reason.
Finally, get your finances in order. Should you win the auction, you will need to pay a ten per cent deposit on the day and you then have one month to pay the rest.
Don’t expect to pay the guide price for the property. Very often, the initial price is simply to entice buyers. It is very likely that this will increase on the day.
Where can I find out about property auctions?
A nationwide list of property auctions across the country can be found online.
On the day of the auction
Stay calm. If you have done your research, you will know the limits of what you want to pay. Don’t get carried away in a bidding war and remember that there will always be other properties.