House auctions can be an exhilarating experience if you know what you’re looking for and you have the budget to bid competitively. House auctions can also be daunting if it’s a new experience. If it is your first time at a property auction, don’t let it overwhelm you. Make sure you give yourself plenty of time to prepare, research your options, and ensure you know where you are financially before embarking on the bidding process.
So what should you look for at a property auction?
Have an idea of locations before you embark on the auction process. A property may seem financially appealing but might not always hit the mark when it comes to location. If for example, you’re looking to purchase a 4-bed family home it’s always a good idea to check local schools, transport connections, and area crime rates. The local council should provide this on their website.
It’s easy to get caught up in the excitement of house auctions without keeping in mind the market value of the property. Have a price range in mind and set a maximum you’re willing to bid. Before attending any house auctions, check the history of the local marketplace – what’s the average house price in the area you are looking to purchase? Whilst buying a property at auction may feel like a bargain at the time, don’t pay over and above the market value of the property as you’ll struggle to generate a return on investment, especially if you also need to invest in property renovations.
Whilst it could be money lost, it’s worthwhile approaching a Chartered Surveyor to survey the property prior to embarking on bidding at house auctions. It’s a given that some bidders will avoid this part of the process to avoid the additional cost but in the longer time, it could say you from making an expensive mistake.
The majority of properties available to purchase at house auctions will have a legal pack. You should obtain a copy of this and seek legal advice prior to the bidding process. Your solicitors will also need to see the property’s listing in the auction catalog.
For more top tips on preparing for a property auction check out our blog “7 top tips for buying at auction”