How to buy a Bargain House at Auction (Part 2)

[TheSecret]

Research

When it comes to buying at auction its all about research, research, research! Its both extensive and time consuming and that’s even before you bid on the property, so buying at auction is no easy ride you will need to carry out a high level of due diligence. This should also include getting a survey done on the property before hand if you are serious about the property and if you don’t end up getting the property you want it could be £300 odd wasted. Prior to the day of auction you should request the legal pack of the property you wish to bid on, the legal pack should contain: any conditions of sale, title deeds, applicable planning permission as well as copies of searches and leases, sellers can often not include all the details so if anything is missing be suspicious and consult with your solicitor, this is a tactic sometimes used to conceal details. To much analysis gives paralysis but not enough will get you a dead duck.

On the day of the auction

Check that the properties you are interested in is still available and weather any special conditions has been placed on any sales. On the day of the auction the legal pack is made available to view but don’t rely on this as it has a tendency to go missing for long periods of time another tactic sometimes utilized across the auction houses. If the reserve is not met as explained area you should approach a member of the auction staff and make an offer.

Getting the elusive bargain

A bargain is usually considered to be in the region of 20% below market value and around 1 in 20 can be found, so if you have done your homework you could find that 1.Usually you will find that you stand a good chance if you target 5 properties, you will therefore have a good chance of finding that bargain and having at least one successful bid on the day, once again it all comes down to the numbers!

Auctioneer Tricks

Yes they do still go on and yes they are legal, never the less you don’t want to get caught out by the auctioneers tricks so do yourself a favour and stand at the back of the room. From there you will have a good look at what exactly is going on. Examples of these tricks include an ‘imaginary bidder’ watch carefully when bidding, and you may also come across a ‘plant’, someone put there by the auctioneer or seller, just to help the bidding along.

Summary

Well there you have it, when attending the auction simply follow the above steps which include:
· Auction properties are sold as seen so dig deep and do some detailed research.
· Decide what the property is worth to you, set your maximum bid and whatever you do stick to it, don’t get caught up in the heat of the bid.
· Get your finances in order and ready for when you get your bid accepted on that gem of a bargain!