Bidding is unconditional
When you bid for a house at a property auction, you are making an unconditional agreement to purchase that property – there is no going back. If you think you can change your mind, you will be in for a shock.
Get pre-approval for your mortgage
Since bidding for a property at auction is unconditional, it is important that you get pre-approval for your mortgage before you bid. If you don’t do that and you are the winning bidder, you could end up obliged to buy a property, only to be turned down by the banks and unable to do so – that is not a good position to be in.
Have the property inspected
Where possible, you should definitely hire a company like SPI Property Inspections to inspect the home you’re interested in buying, ensuring that there are no major structural problems, etc., so that you know what you’re buying into and you don’t end up purchasing a home that has dry rot, subsidence or anything else that could be extremely expensive to put right.
Research the area
You should always research the area that you will be buying into as thoroughly as you research the state of the property you plan to bid on because there’s not much point buying your dream home if it’s in a neighbourhood that you hate where crime is high, or there are few amenities that would be useful to you, for example.
When you’re researching the neighbourhood, it would be a good idea to see how much other houses have sold for in the area. This will give you an idea of what your property could be worth once you’ve renovated it, so you can work out how much it’s worth bidding to secure it and when you’d be better off cutting your losses.
Don’t give too much away
Experienced auctioneers are very good at getting information out of buyers in regards to how much they’re willing to pay for various properties, which properties they’re interested in, and a whole host of other things that would work against you and push up the price you have to pay in the end. So, it is really best to stay as tight-lipped about your situation as you possibly can.
Hire a solicitor
You absolutely need to hire a solicitor to check the contract and arrange for any needed amendments to be made when you purchase a property at auction. In this respect, it is no different from buying a house via more traditional means, and it will help to protect you should anything go wrong with the sale. You need to be protected, so don’t skip this step.
If you follow the advice given above and you take your time – not rushing into anything – there is no reason why you should not be able to find a great house at auction. Pay a fair price for it and have lots of fun doing it up to your own standards. I wish you the best of luck.
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