Setting up an auction is an exciting task, but the experience is quite overwhelming for the purchasers as they are very much new to the property market. These auctions favor mostly the vendors. The numbers of properties being sold at auctions are reaching record highs, and these buyers find out that many of the vendors aren’t open to accepting offers and so they would rather go to an auction.
But at times purchasing at an auction can put you in pitfalls, but these ideas below can help you to overcome traps and not make you an unwary buyer. Here is how:
- Do Your Homework
Most of the auctioneers hold monthly or quarterly auction sales which advertise the auction with the help of catalogs which are printed some weeks in advance. You can also subscribe to the catalog mailing lists. You can ask why the property is on sale at an auction. Also, ask whether the owner wants a quick sale or has the property been repossessed by a mortgage lender? Is it safe to get such a property? You can reason and ask a lot of queries in your mind. Whatever query you have, can get sorted out. You need to be skeptical if an individual is selling it. Before the auction, you need to instruct a conveyance lawyer to review the documentation before the auction proceeds.
- Conduct Rehearsals
Before participating in an auction, you can attend one or two auctions, and you can watch as to how the things work. What you see on TV is just nothing, as auctions are complex than how they look. Getting an experience and attending other auctions can ensure you that you will do better and suitably attend auctions.
- Get the Auction Pack when You Attend
Every auction property will have the corresponding auction conveyance papers and also the home information pack. This pack includes the title deeds, local authority and drainage searches and Property Information questionnaire. If it is a case of a leasehold property, the auction pack may include a copy of the lease, information of the management and the seller’s leasehold information form and other conveyance documentation which is specific to a leasehold property.
- You Need to Inspect the Property Properly
You need to visit the property apart from checking the conveyance. As for how you follow with any house purchase, you need to remember the three most important non-conveyancing advice about the purchase, and that is primarily of the property location. You also need to check if the property is vacant. If you intend to purchase the vacant property, then you need to ensure that your conveyance solicitor checks whether the contract provides for possessions which are vacant. You can even look for some online conveyancing experts’ words to confirm that you make it right at the end.
There are some auction properties which require significant amounts of building work or there are some which have a history of structural problems that can be expensive to fix. There can be times when the property gets into an auction only when it gets expensive to fix. So you need to have a thorough survey done before even the thought of bidding comes in your mind.