1. Research
Decide on the area you’re interested in and contact the local auction Houses and your Estate agents . They will be able to advise you on any upcoming auctions or any properties they are taking on that need a quick sale via the Modern method of Auction .
2. Go and See the Property and Ask th right Questions
Once you have spotted a property (or two) that you like, contact the auction provider to arrange a viewing. Make sure to thoroughly inspect it and its surrounding neighbourhood. Consider taking a builder or handyman with you to find out what may need doing to the property, and how much it is likely to cost. If you have any queries, don't be afraid to ask especially if its a local agent as they will know the market very well
3. look at the fine detail
The particulars may contain the key information, but you may need to request a separate legal pack to get the full picture.
Searches are often included in the legal documents, but if they're not, ask your solicitor to do them before the auction. Legal documents can vary from one property to another so consider asking a solicitor to look over the legal pack for any hidden covenants or loopholes that could end up costing you more than you bargained for.
4. you need to move fast
Whilst you need to be careful and make the right decision, if you have a genuine property deal it will be sold very quick
5. keep an eye for any changes
You can always ask to be kept informed of any alterations or amendments to the sale conditions (an 'Addendum') and if you are really keen, ask them to let you know if there is any possibility of the property being sold before the auction date, as this has been known to happen.
6. Set your budget
Think about the maximum price you are willing to pay for the property, whilst auction properties may be cheaper than market value, renovations are usually needed. Unless you're lucky enough to be a cash buyer, you will need finance in place before bidding. Make sure you know how much the deposit will be and check which method of payment is required so you can arrange for sufficient funds to be available.
7. Be Punctual
It is advisable to arrive at the auction well before the advertised starting time if its a physical auction. Any additional information or changes to a property will be available in an 'Addendum' or will be announced by the auctioneer before the auction starts. Make sure you are aware of any alterations as they could have a bearing on your decision to buy the property
8. Understand the difference between guide and reserve price
Be aware that each auction property is initially offered at a guide price and is also subject to a reserve price. The guide price is the starting price at which bidding will commence, whereas the reserve price is the minimum figure the seller will accept. The reserve price is not disclosed to bidders but can be up to 10% higher than the guide price so bear that in mind when bidding.
9. If successful, you are bound by the T&Cs of the sale when the gavel falls or your online Bid is accepted
If your bid is successful, you will be required to sign the contract and pay the deposit there and then. At the fall of the auctioneer's gavel, you will be bound by the terms and conditions of the sale and liable for the insurance of the property from that moment. Pulling out of the sale after this could result in huge after costs.
10. If a property is unsold, you may be able to buy it privately
In the instance that a property remains unsold, the auctioneer may have the authority to sell it privately in the room immediately after the sale. Make sure to register your interest with the auctioneer prior to the sale and stick around at the end of the auction.
