The Mechanics Of Buying Property From Auction

By: Javaid Kiyani

Before you buy any property from auction, you need to do some serious research. Here, we will discuss some useful tips any auction property purchaser should use when considering an auction property.

Prior to the auction, you need to secure a copy or catalogue of the property lots that will be auctioned at any particular auction house. It may be worthwhile to obtain several catalogues from local auction houses so that you can compare property specifics. If there are any properties that you are interested in, it is important to remember that an offer can be made before the auction. The seller will consider the offer and get back to you if he wants to proceed on that basis. In the event of your offer being accepted, the property will be removed from the auction process and you will be obliged to complete on the purchase.

Once you have the auction catalogues to hand, you should scan them for properties that suit your preference both in terms of price range and the nature of the property. Organize and arrange the properties according to the preferred style and structure of the property. Investigate or scrutinize the description of the property. Check any legal paperwork the auction house may hold for any property you are interested in. If unsure, it may be advisable to seek the guidance of lawyers or experts.

Double check any terms and conditions of the contract governing the schedule of payment. It is extremely important to make sure that you have available funds to purchase any one property in accordance with the terms and conditions of that lot. If you feel that there maybe a need for a mortgage, you will need to arrange this before attending the auction. Otherwise, you will risk losing any deposit you put forward for a property that you are subsequently not able to raise finance for.

On the day of the auction, you need to acquaint yourself with the mechanics of that auction. Usually, there is a need for prior registration if you wish to participate in the bidding. Be sure to take in any identification documents with you. You will not be allowed to bid without proof of ID. You will also need to take in a cheque book or bankers draft for any deposits that may be required.

Never arrive late. This is very important because you will need time to familiarize with the auction room and the mannerisms of the auctioneer. On arrival, always check the list of properties for any changes or alterations. It is not uncommon for properties to be removed from auction proceedings prior to the auction.

If you are to bid, make your bid clear so as to prevent confusion on the part of the auctioneer. Whenever bidding at auction always have your maximum possible bid in mind and dont ever deter from this amount. Your maximum bid will take into account any works that you feel need doing to the property and also any profit levels you need to clear.

If a property fails to sell at auction due to the reservation price not being met, you should consider making a bid directly after the bidding has stopped.

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