Property Auctions: A Buyer’s Guide to Auction Success
There are many ways to sell a property. One option is the traditional route in which a seller hires a real estate agent and months of negotiation process. But if you want an efficient way to sell your property, then a property auction might just be the perfect path you can take. On the other hand, if you are a buyer and want a property that can be purchased for a much lesser market value then you might just find one in an auction.
Auctions have been around for many years but it is only recently that it became popular in the property business industry. In earlier years, auctions have made an impression that it is only limited to the elite or investors. But nowadays, this perception has changed as housing cost continues to increase. Many middle class citizens have already turned to auctions to find affordable properties.
If you are a buyer and seriously attracted in purchasing a property from an auction then you need to learn a few things. An auction can be a very confusing and daunting experience for any new buyer so it is important that you first gain the necessary facts about it before pursuing this endeavor.
Step 1:
You must acknowledge that auctions are not for everyone. Determine if this approach is right for you before you actually engage in one. Initially, the most important step you need to do is determine what you want and why you want it from house auctions. If it is an investment, then you must be certain about your plan and the return that you want.
Step 2:
There are many auctions held every year in the UK so if you really want to find the most ideal property for you then you need to keep searching. You can subscribe to an auction house’s mailing list, read through local publications’ property sections and search on the web. In this way you will be aware of the various auctions that are going to take place all throughout the country.
Step 3:
Auction catalogues are sent to prospective buyers three to four weeks before the actual auction date. If you do not wait for this catalogue then you also have the option of searching on the auction house’s website for information on properties to be auctioned. These catalogues will contain the finalized details of all the lots you are interested in. This will also include the property’s floor plan, room measurements and guide price.
Step 4:
You will have limited time to do organize everything before the auction day arrives. At this point, you need to call the auction house for the property’s viewing arrangement as soon as you receive the property auctions catalogue. This open viewing will allow buyers to visit the property and make sure it is worth buying.
Step 5:
It is to be expected that properties sold at auction will not be in prime condition so you will likely need to have it surveyed. You might also need the quotes from a builder for the works and plans you need to carry out on the property. In this way, you can discuss with your surveyor what the property is truly worth in its present condition and what its value will be after renovations.
Step 6:
You should also involve your solicitors. They will be the one who will handle the legalities involved with the sale. This will include the inspecting the title deeds, operating leases, and building regulation approvals. Their professional advice might prove to be valuable in our final decision in buying the property.
Step 7:
Once you have made a successful bid, you are required to give a deposit of 10 % and the total payment within 28 days of the sale. With this fact, you need to organize your finances before the event to be able to complete all the transactions expected of you.
Step 8:
Before actually attending the property sales auctions, you must initially determine your bid level. Your maximum bid level should include all the costs that will arise if you are successful in your bid. Always focus on this limit and never get influenced by the auctioneer who will surely goad you in bidding higher that what you intentionally would want.
Step 9:
Before going to the auction house, it is better to ensure that the property that interests you is still up for bid. You should arrive in good time to find yourself a good seat. Remember that these events will usually have limited space. Watch out for any announcements before the start of the affair about the changes in conditions on the property you are bidding for.
Some auctions will require bidders to register and will be given a paddle with a number in which you can bid on. If this paddle is not available, then you can either raise your hand or use the catalogue to bid. Do not worry on bidding accidentally as an auctioneer is a professional who will not mistake a scratch of the head for a bid. If you have any questions or queries, you can always ask the auctioneer or the property auctions estate agents prior to the start time. These people are well-briefed about the event and approachable.
Step 10:
Remember that the fall of the hammer signifies that a successful bid has been made. The buyer is required to pay the deposit and sign the memorandum of sale. You are obliged to pay the total amount within 28 days the sale was made.
The bidding process in auctions can be a bit intimidating but if you are properly prepared and knowledgeable on all its aspects, there is no doubt you will attain all your objectives.
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