Buying at an auction can be a great idea. Although they often have the image of a shady place where people go to offload bad houses or repossessed homes are sold on, in most instances, this is not the case.
In fact, the modern, professional real estate auctioneer can conduct their business virtually, they no longer need physical premises or they can rent stylish locations to increase the respectability of the sale.
The simple fact is that an auction can be a great opportunity to purchase a home for a bargain price. However, it is imperative every buyer undertakes the following checks before they commit to purchasing.
Although the pictures of a property can look fantastic you have no way of knowing how accurate they are. The right angle and light can transform any shot. That is why it is essential you view the house itself before bidding.
In some cases, you can go inside the house. But, even if this isn’t an option you can look around the outside and peer through windows and doors. This will give you an idea regarding what condition it is really in, how much work needs doing, and whether you like the location.
Only then can you start bidding.
Know The Price
An auction offers the promise of getting a property for less than it is really worth. However, this is not always the case, especially if there is a lot of interest in one particular property.
You need to know the guide price of the property and, if possible, how much interest there is in it. This will help you to decide if you can afford to bid on it.
Of course, due diligence means knowing what funds you have available and can borrow, with the funding in position before the auction. This will allow you to set a maximum bid.
Get A Survey Done
Alongside verifying the price and the funds you have available it is imperative that you commission a survey of the property before the auction. The amount of work that needs doing to a property can affect the amount you are prepared or can afford, to pay for it.
A survey will let you know what issues the property has and allow you to calculate the approximate cost of rectifying them. After all, you don’t want to purchase a home and not be able to pay for all the work that needs doing!
Check The Legal Details
Finally, it is imperative that you check the legal details to do with the sale, and, ideally, you should get a lawyer to verify the contract for you. This will protect you against buying a property with squatters or some other issues.
At the same time, you need to verify the costs of the auction house, which ones you are liable for, and how quickly you need to settle with them. Most auction houses require funds within 14 days, you need to be prepared for this.
If you are properly prepared you can grab a bargain!