A property auction usually takes place at a venue such as a conference centre or hotel and brings together the auctioneer and potential buyers. Property auction houses will publish a list of upcoming auctions and can add you to their mailing list to enable you to stay up to date.
What is the first step if you see a property in which you are interested?
It is important to view the property first and don’t go to the auction blindly hoping a property you bid successfully on is worth the money. Always arrange a viewing by contacting the auction house directly. A good inspection is required, not only focusing on the property itself but also looking at the surrounding area and amenities such as cafes, restaurants, and travel links. You can also arrange to view the lot with a builder to ascertain how much any possible repairs will cost. Don’t be afraid to ask the auctioneer questions.
Arrive early at the auction
Always arrive early at the auction. Obtain a preferred seat and familiarise yourself with any amendments to a property. These will be available to read or will be announced by the auctioneer prior to the start of the auction. Any alterations to the property may have an impact on your decision to buy.
Get a copy of the details of properties up for auction
Essential information will be included but you may need to ask for a legal pack, which usually includes searches. If this information is not available, you can ask your solicitor to conduct this before the auction. Once you are happy with the property you plan to purchase, it is important to act swiftly on the day. Whether you are considering purchasing a property at an auction for an additional rental income or want to develop it to live in, there are various Ascot solicitors to choose from such as https://www.parachutelaw.co.uk/. They will prepare the necessary legal work from the start of the process until completion.
Be aware of the difference between guide and reserve price
Each property is firstly offered at a guide price. The reserve figure is the seller’s minimum price required and the lowest figure the auctioneer can sell the property for. The reserve figure is confidential between the seller and the auctioneer. If the reserve price is not met, bidders have the chance to approach the auctioneer after the event to see whether a deal can be reached.
Check the details of the terms and conditions
Always read the terms and conditions and make your bids clear and audible. If you can’t attend the auction, your representative can bid on your behalf. Some auctioneers may also permit telephone bids.
Don’t spend more than you can afford
As with any large purchase, make sure the property you buy is worth the money. Decide how much you are prepared to pay and always stick to your maximum bid. If you are the highest bidder at the auction and your offer is accepted, you are legally obliged to put down the deposit.
