Selling or buying a home at auction is both profitable and exciting. The procedure of auction buying is very fast and swift. The risk of price fluctuation can be avoided. At auction, the buyers and the sellers are motivated. As the hammer of the auctioneer falls, the property will be yours. However, you should not undertake it lightly because it needs a little research.
When planning to buy property at auction, follow the tips below;
• Get mailing lists from the local auctioneer
Auctioneers are found on the online searches and business directories. Once you find and contact them, they will send out lists of properties, floor plan, and prices. Auctioneers are usually advertised on property websites and local newspapers.
• Property viewing
Contact the auctioneers and arrange a property viewing. Take down notes of the property details and the renovations needed to be done before deciding to bid. Contact also the local builders to get an estimation of the work involves.
• Find enough cash
Because of the immediate processing when buying at auction, be sure you have enough cash before you join. A winning bid is at the moment when the hammer drops. About ten percent of the property cost need front during the auction and the remaining will be paid within twenty eight days. Be sure not to bid at an auction in case you haven’t obtained a mortgage offer or perhaps home sale hasn’t been completed. When you approach mortgage lenders, it is important to let them know that you plan to buy property at auction.
• Get survey
The mortgage lender will require a survey or perhaps valuation before the action occurs. This is to verify the guide price. It is recommended to commission an entire structural survey for the property that needs a lot of renovation and the auctioneers will produce also lots of information. However, it is still best to pay for your own survey.
• Seek advice from a solicitor
When purchasing property at an auction, a lot of conveyancing works occur before the auction. The works include implementation of checks, legal problems on ownership, and application planning. So, it is advisable to get some advice from the solicitor.
• Work out how much you want to bid
It is vital to consider the costs when you decide how much you want to bid. These include solicitor’s fees, building work, moving costs, and stamp duty. Often, the bid is accepted before an auction occurs. This takes place when the property is already listed for auction unless it is sold previously. Auction selling incur fees for sellers and these people want to sell in advance.
• Be prepared
Many experts advise people to attend several auctions before considering buying them. This will assists you to be familiarized with the process of bidding. However, if you think you’re confident to attend and make a bid instantly, bring the following;
1. House details
2. Proof of identity
3. Banker’s draft
4. Building society cheque
• The process of bidding
Once you arrive at the bidding, you have to register. Most auctioneers provide a number when you bid. However, in some cases, bringing a catalogue is also acceptable. The bidding can as well take place through phone, by a solicitor, and on the internet. Verify the auction house for alternative ways on how to bid. This will start lower the guide price then move in multiples of cash if the bidding will go slow. The reserve price is fixed. In case this does not succeed, it won’t be sold. However, you can speak with the seller if the sale can be negotiated afterwards.
• Make a successful bid
If you are a highest bidder, you’ll be successful to own a property when the hammer of the auctioneer’s falls. It is required to give your deposit, details of the solicitor, and proof of identity. You will be given a binding contract and you will pay the remaining amount within twenty eight days.
By applying these tips, you will be successful in the auction buying.