Before you buy at auction

Everything you need to think about – a quick guide from our auction experts

Make sure you’re prepared, so that your first auction won’t be your last.

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If you do your homework – and know exactly how you’re going to pay for your property – buying at auction can be fun as well as rewarding.

First, be clear about what you’re doing, and why

Ask yourself a few questions. What do you plan to do with any property you buy? Do you want to buy to let? Or buy to sell? What types of properties are you thinking of? Are you looking in a certain region or location? If you’re thinking of buying to refurbish and then sell on, keep in mind the potential skills required to carry out the work involved, along with factoring in any additional costs. Keep focusing on what you’re trying to achieve, and you’ll have a much better chance of success.

 

Get to know your auction house

Register with your local auction house, and go along to a few auctions. Get a feel for the experience. Make the auction house your friend – they might be able to advise you on any property you’re thinking of buying. And if you’re buying to sell, they could help you with the sale when the time comes. 

 

Make sure the money you need is available

It’s vital the finance is ready for you when you bid at auction. In most cases, although it can sometimes be less, you have only 28 days to pay for your purchase – and that starts when the hammer falls. This is why auction finance from experts like us might be a good option. We understand auctions, and know how to move fast while helping you through the whole process.

 

When you’ve spotted a property, check it out – properly

View the property you’re thinking of buying – just as you would if you were buying through an estate agent. And get a survey done. When your bid’s accepted, it’s too late for nasty surprises.

 

Look at the legal side of things

• It might be a good idea to appoint a solicitor who has experience with clients buying property at auction for investment purposes – and who understands how things need to move quickly.

• Check whether the property is leasehold or freehold. If it has a lease, find out the length – if it’s 99 years or under, this could affect the value.

‌• Are there any restrictions on what you could do with the property? For example, is it a listed building, or in a conservation area?

• Check if there’s planning permission for any potential improvements or extensions.

• There should be a legal pack – read it carefully, and check if there are any additional charges that come with the purchase.

• If the property is being rented, check the type of tenancy. You’ll need to be certain it’s an assured shorthold tenancy (AST). If it’s a regulated tenancy, the tenant (known as a ‘sitting tenant’) has more rights. This may affect your options and re-saleability of the property – so this is very important.

 

 If there’s anything you’re not sure about, just ask us. We’re more than happy to help.

 
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