Auctions have become increasingly popular as a way of getting a good deal in buying a home. How do these auctions work and what should you be aware of?
The first rule of buying at house auction is always remember how much money you can afford to invest in a property. If you get carried away, you may find yourself with a home you cannot afford.
Buying property at a house auction is becoming increasingly popular, especially at the higher end of the market, but you need to keep a cool head and not get carried away with the excitement of a bidding war.
Before the auction begins, make sure you have gathered as much information as possible about any property that interests you. View the property thoroughly and look at all legal documents connected to it. Think about all the other fees that will be payable if you decide to buy and remember that it is too late to change your mind after the hammer has fallen.
If you have never attended an auction before, talk to the auctioneers before it begins as they are usually happy to offer advice. They will also let you know how to bid, deposit required, timing for rest of monies and legal terms and conditions.
Any property offered for sale at an auction will usually have a reserve price, which means it will remain unsold if that price is not reached. If a property is advertised as being 'without reserve', the auctioneer is obliged to accept the highest bid, regardless of how much it is.
So do we think it is a good place to secure a property - of course! Take someone with you who knows your budget, who has more self control and that has nothing to do with the property (ie hasn't seen it) as they will provide you with a hope of not spending too much.