Finding Property At A House Auction
Property auctions are a method of buying and selling properties that many people never consider - but they can be a great way to sell a house fast, and from the point of view of the first-time buyer, a way of getting a house at an attractive price, potentially better than you would find through traditional methods of finding a home: if done correctly.
If you are new to the world of property auctions, then the best thing to do is to attend one just to see what happens and to get used to the process. It is a bad idea for the first property auction you go to, to be one where you want to bid on a property, as you could get caught up and end up bidding too much, ultimately paying too high a price.
By researching auction houses in your area online you should find several places that undertake property auctions: you can then get on their mailing lists to find out about their auctions and what they sell. There will be an auction catalogue before each sale listing details of the properties.
It is important that you visit any house you want to bid on in the auction: tales abound of people who buy on a punt or a whim and then turn up to see a property in a horrible state, and lose money in the process.
Another important point is that if you like a property to the level that you will make an offer for it, you should also get a homebuyers report. Although many don't like the idea of spending money when they've no idea if they will get the property or not at the auction, it is essential so that you get a realistic idea of what state the property is in, and indeed its value.
If you are interested in a property, then use all the information available on the internet for free to guide you. For instance, check whether the property has sold recently and what it sold for. If there is no information for that property, you can look at those around it to get some idea of what property in that area is worth. Indeed, if there are a few properties you could be interested in, research them thoroughly online first to whittle down the options to one or two that you will go and see. With things like Google streetview it has never been easier to get a good feel for a place without actually going there - though as mentioned this is no substitute for actually going to a place you have ruled as potentially credible.
There is a lot to do when finding property at a house auction. You should have thoroughly researched any properties you like in the catalogue before going, and as mentioned if you intend to bid, you should have had a viewing and also had the surveyor round. There are important financial considerations with regard to buying at auction so please read the other articles in the auction section here to find out more about those.Last update: 01 May 2015
More first-time house buying articles:
- Will I Be Able To Get A Mortgage
- Repayment and Interest Only Mortgages
- How to Get on the Housing Register
- Double-Checks Before Exchanging Contracts
- Stamp Duty Explained