Buyers 10 Steps to Auction Success
Buying an auction property is an easy process. We have broken it down into ten steps which are easy to follow. Please take a look at below at our helpful tips. If you still have questions then call us on 0345 873 1366 for further advice.
Know what You Want
- Auctions do not work for everyone, so make sure the process is right for you before you get in too deep.
- It is vital you know what you want and why you want it - if you are not totally sure on this you should not attempt to buy at auction.
- Subscribe to newsletters to ensure you keep up to date with all available property lots.
- Keep reading local press and visit our website regularly to ensure you are fully aware of all upcoming auctions.
- Hear about properties that are right for you as soon as they become available, this gives you the best chance to view options and plan your next move.
View a Catalogue
- View the electronic catalogue on our website or ask for the printed version; we can mail it to you or you can pick one up from our office.
- This will contain finalised details of all properties in an upcoming auction - including photos, guide prices and usually a floorplan.
- If a catalogue is not available, you can view draft property details on our website or they can be emailed to you on request.
Open Day Viewing
- Try to visit the property on it's first open day. If possible take someone with you who's opinion you value as this will help you make a better judgement on the property.
- Auction House Team Members will be available at the Open Day to Talk to answer any questions you have about the property.
- Visit the property again - this will allow you to gauge whether the thoughts you had during your initial viewing were accurate.
Surveys and Reports
- Properties sold at auction may not always be in the best condition.
- It is important to consider having a survey, quotes or reports from builders and specialist tradesmen before you decide to bid on a property.
- Make sure you receive all of these prior to the auction and you have all the information you require before bidding on a property.
- It is important to involve your solicitors in this process at the earliest possible point.
- They will inspect the legal packs and other information, such as searches and planning permission - these can be accessed online.
- Their advice and expertise could prove invaluable before committing to bid.
- Remember once the hammer comes down it's too late to change any terms or your mind.
You will need:
- 10% of the purchase price available on the day of the auction (subject to a minimum on low priced properties)
- The remainder of the purchase price and fees in readiness for completion (usually within 28 days of the auction)
- You can organise this with your financial adviser, bank or through the use of short-term finance; our recommended associates are Auction Finance or Bridging Finance.
- Note: It is important to contact your insurers as after exchange you will be responsible for the insurance of the property.
Determine Your Bid
- Be organised - ensure you determine your budget before the auction and include all costs that will occur after a successful bid, such as professional fees and stamp duty.
- There will be an administration fee to be paid to the auctioneers for their services.
- Set a maximum bid level before the auction and make sure you stick to it to ensure you do not get carried away and exceed your means.
Auction Day Tips
- Always check before the auction that the property you are interested in has not been withdrawn prior.
- Arrive at the auction in plenty of time - auctions can often be very busy with limited space and you should make sure you are in clear view of the auctioneer's rostrum.
- Last minute changes to catalogue entries will be handed out on an 'addendum' at the auction.
- If you have any queries prior to the start of the auction, please speak to either our auctioneer or a member of the Auction House team.
- Ensure you make it clear when you wish to bid on a property by holding up either your hand or a catalogue.
- If you wish to bid a different amount than is being offered by the auctioneer, you can shout this out.
After the Hammer Falls
- The fall of the hammer signifies the sale which is legally binding sale.
- At this point if you have been successful, you must pay a 10% deposit and sign a memorandum of sale.
Make sure you have forms of ID with you:
- either a passport or driving license and
- a utility bill
- If the property you are interested in does not reach it's reserve and is not sold in the room - speak with a member of the Auction House team and inform them you are still interested. It may be possible for a sale to be completed quickly under auction rules.
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