Things to Consider When Buying Property by Auction in the UK
Buying property by auction can be highly rewarding. Buyers who are aware of the process and prepared will be in a position to make informed decisions and increase their potential of bagging their dream property. Some things to consider:
1. Do Your Research
There will be considerable information available when the property is listed or shortly thereafter. This will include legal documentation, surveys, possible issues or restrictions and information about the auction itself including process, timescales and fees. It pays to review all documentation thoroughly and take advice in advance if needed. It is also advisable to view the property in advance of the auction, and the area in which it is located if you are not already familiar with it.
2. Prepare Your Finances
Buying at auction usually requires that a deposit be paid immediately following a successful bid. There is then a specific window in which the balance must be paid. Ensuring that funds will be available within the required timescales is essential.
3. Legal Advice
It is a good idea to engage a solicitor or conveyancer in advance who has experience of property auctions. They can review documents on your behalf and guide you through the legal requirements of the auction process.
4. View the Property
We have all seen programmes on television when someone has bought a property at auction on a whim and has not viewed it before the auction. This is not advised. Once the hammer comes down on your successful bid you have an obligation to buy the property including any problems that may exist with it. Arranging to view the property beforehand, allows you to ask questions, open cupboards and bring in your builder to provide a quote before you start bidding.
5. Make Sure You Understand the Process
While buying at auction is not complicated, it is different from buying through a traditional estate agent. It is important that you familiarise yourself with the process and rules, in addition to fees, premiums or costs.