How Can I Prepare For Going To An Auction Day?

How Can I Prepare For Going To An Auction Day?

Auctions are becoming more attractive to property investors, as you are avoiding the conventional drawn out method of house buying. At auction the process is condensed into a matter of minutes, rather than months and when that hammer falls, you own that property.

So, how can you prepare? Well before planning to go to an auction, make sure you consult our best tips on making sure you are well prepared:

  • Research! It is invaluable that you make sure you do comparables and check the market to see how much similar properties have been sold for in that area.
  • Make sure you visit the property beforehand. Make sure the property is what the auction catalogue says it is. This will ensure you aren’t welcomed with any hidden nasties once you have bought the property.
  • Read the legal pack and be sure to get your solicitor to run their eye over it too.
  • Be sure to have the finances in place ready to go! It is no good sorting them once you have bought the property. Ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days.
  • Plan if you need mortgage assistance. It’s wise to arrange a mortgage in principal with a bank or building society before buying at auction. You could lose your 10% deposit if you fail to complete within the time given (normally within 20 working days).
  • Be mindful that buying at auction is a binding commitment and carries the same legal implications as a signed contract by private treaty. In most cases, auction offices have copies of legal documentation provided by the seller’s solicitors which can be sent to you.

If you ensure that you follow these simple but invaluable steps before going to a property auction, you will be more than prepared.