Buying a home is a significant moment in someone’s life, and with a variety of different ways in which to do so, from shared ownership to Right-to-buy, it is important to do your research into what process is best suited to you and your situation.
What is a property auction?
A property auction is where you can find an array of properties which are being sold via a live bidding process to a group of interested parties who are all competing with one another to buy. The highest bidder will secure the property and therefore need to complete the purchase within 28 days, a much quicker process than normal.
Is a property auction right for me?
There is a lot more planning that goes into a buying a property at auction than one might think, an important part is making sure you have a set budget and are prepared for a speedy affair.
Another factor to consider is that properties on auction are usually far from a finished product, and so will need a lot of hard work and preparation to go into it as well as plenty of time and money.
If you are someone who thrives when under pressure then this will be a great opportunity for you, if not then it may be too much of an intense process to deal with. When buying at an auction, it is vital to stay calm and remember to not get carried away with the excitement and thrill from the bidding. It is important for your budget that you remain focused on what you came for, research a few different properties to have in your sights, this way you are bound to feel less pressured to offer an unreasonable price on the only one property which you came for.
How to prepare before an auction?
2. Research Properties- Before going into an auction, have some property options which you are 100% sure on. Arrange viewings through the auction house and do a recce of the property and surrounding neighbourhood.
3. The Auction Particulars- Request the particulars and/or a legal pack, this will contain essential information regarding the process when securing the property. You can also ask a solicitor to have a read through the forms so that you don’t miss any potential loopholes or small print which could see you paying more. This also applies to the terms and conditions of the auction house.
4. Be prompt and keep informed- There is only a 4-week window from the publication of the auction catalogue to the auction itself, so if you have properly considered your options and are set on a property/properties, make sure to be quick and go for it.
5. Set a budget- It may be obvious but it’s a critical part of any buying process. You will need to set out a budget to plan what you are able to afford within this process. Remember that the property is only the first purchase, if you are renovating, extending or re-building, then you will need to bear in mind all of those additional costs.
Once you feel fully prepared for the auction by knowing the properties that you are most interested in, having asked all of the advice that you need to know for both before and after the purchase and having all of your finances in place, all that’s left to do is begin your new house journey!