Top Tips for buying at auction
Buying a property at auction can be a daunting process but it doesn' come without its rewards,
such as avoiding lengthy and uncertain buying procedures and the potential to bag a bargain!
With these top tips your auction process should run smoothly and successfully!
Book a viewing
Before you start any processes make sure that you book a viewing to see the property you are
interested in. You may be provided with a number of photos and floor plans, however, you can
never fully experience the space and surroundings of the property unless you visit it.
For example, rooms may be larger or smaller than in the photos, the property could be situated
on a busy main road, or the garden could require a bit more work than expected!
You may want to 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.
Look into getting a mortgage
You don't have to be a cash buyer to buy at auction. In order to get a good mortgage on an
auction property, you need a good mortgage broker.
Together you will need to agree how much you can borrow and how much its likely to be worth.
To do this, the broker needs to see what you see. It is therefore a good idea to show them a
video of the property. The broker should also visit the property and get your mortgage agreed in
Set your budget
When discussing the terms of your mortgage, make sure that you set a limit which you will not
bid above. 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.
Read the legal pack
A legal pack is the set of documentation prepared by the seller's solicitor. The elements of a
legal pack are:
- Official Copy of Register of Title (Office Copy Entry)
- Land Registry and Local Searches
- Special Conditions of Sale
- Property Information Form
- Fixtures and Fittings Form
- Management Information
- Tenancy Agreements
- Planning Permission Documentation
It is vital that both you and your solicitor read through the legal pack for any property which you
are looking to bid on. Things to look out for include: any outstanding bills you may inherit, if any
major building work is planned and any additional buying costs.
Have a plan
Before you go to an auction, make sure that you have a plan. Whilst it is important to take your
time considering any property, there is usually only four weeks between the publication of the
auction catalogue and the auction, so you will have to act fast.
Go with a few properties in mind which you wish to bid for (making sure that you have
researched them all beforehand). Finally, write down your maximum bid for each property
before you go in, and stick to it!
Lets Move in partnership are the licensed partner of Town & Country Property Auctions in the
West Midlands, which means we offer a property auction service throughout the West Midlands
that can help you find the perfect home!
If you need any help or advice before attending a Town & Country Property Auction contact us