If you’ve never bought a property through an auction before, you may be wondering what steps to take in preparation. Auction House has a wealth of experience in helping clients find and purchase the right property for them. In this blog, we’ve detailed some guidance to help first-time auction buyers feel confident and prepared.
Arrange your finances in advance
Once the hammer falls in the auction room, the contracts are exchanged and you will enter a legally binding sale. If you’re the highest bidder when the hammer goes down, you must have a 10% deposit available, as well as any additional fees.
If you’re buying a property with a mortgage or specialist auction finance, make sure you’re working with a lender that can act quickly. If you secure a property and don't have the finances in place, you may lose your deposit and be subject to fees.
Research other properties in the area
Taking a look at properties similar to the one you’re interested in can help you to realise its full potential, as well as roughly what you should expect to pay. Take a look at previously sold properties on the Auction House website, and visit local estate agent websites, as well as property portals such as Rightmove. Not only can you view the property itself, but you also have access to information such as how the property’s value has changed throughout previous sales.
Take a look around and make a budget for renovations
If you’re interested in an investment property or somewhere that needs modernisation, it’s important to figure out the scope of the work you would be taking on. Don’t risk signing up for a project that’s more than you accounted for, and take note of all areas that require improvement. By doing this, you can assess whether your intended budget would cover the cost of refurbishments, or if it’s beyond what you can afford.
Read (and re-read) the legal pack
A legal pack is a set of documentation prepared by the seller’s solicitor. You can find the legal packs for our properties when you register an account with us. Once you’ve logged in/signed up, download and read through the legal pack yourself first, then appoint a solicitor experienced in auctions to take a look and ensure everything is in order.
Additional fees, conditions or restrictions are often outlined in the legal packs. It’s impossible to make an informed decision about purchasing an auction lot without reviewing this information.
Attend an auction
If you haven’t attended an auction before, we recommend attending one to familiarise yourself with the process before bidding. For online, in-room and live-stream auctions, you can attend without having to place a bid. Use this as an opportunity to observe how people bid and behave, as well as how the auctioneer conducts the auction.
Are you thinking about purchasing a property through Auction House? Get in touch with your local team today for further guidance!
