There has been an increase in the number of properties bought at auction in the past few years as buying at action does have advantages, this is mainly due to the following.
1. Control, certainty and transparency – as the buyer you make all the decisions on when to buy and how much to spend on the bidding. If your bid is successful and higher than the other bidders then the property is yours on completion, as the seller cannot withdraw the property.
2. You can buy properties quickly – if you are well organised, with all your financials in place then the porperty can be yours within just a few days. Although take note that is the auctioneer is following RICS Common Auction Conditions, then completion will require 20 days from the auction date.
3. Properties on offer with low guide prices – you may be able to successfully win a property much lower than the market value, but the final price may be increased by competitve bidders.
Before attending any auction there are several things to take note of. Get hold of a copy of the catalogue from the auctioneer, this contains the ‘lots’ which will be available, then you can arrange any viewings before commiting to a purchase. Make sure you deal with the autioneer direct so you can be sure you have the most up to date information to hand. If you are browsing the properties online visit the actioneers official website, rather than a listings website as these are less likely to be up to date, or have the full information available.
Before the auction familiarise yourself with the ‘Important Notice to Bidders’, ‘Memorandum of Sale’ and the general conditions of sale for the auction house. If you are able to get the specific information for the lot, or lots, you are interested in purchasing this is beneficial, as is the legal pack and any special conditions of sale.
You will need several things from the autioneer, the guide price, the addendum and the autioneers fees. The guide price is likely to change at any point during the marketing period, so make sure you check the latest figures before attending the auction. The addendum will inform you of any amendments or additions to the catalogue that you may need to be aware of.
Before you commit to purchasing a property make sure that all the information you have been given is correct and seek advice from the appropriate professionals. You may wish to get a valuation and appropriate surveys done on any potential investments and make sure you arrange all finances for the exchange and completion.
Once you have decided to make a bid then keep in regular contact with the auctioneer to find out their proceedures for internet or phone bidding, signing of the Memorandum of Sale, VAT inclusions, ID checks and pre-registration.
One final thing before heading off for the aution house, just check that the property is still available, and has not been withdrawn or sold, to save a wasted journey.
Good luck bidding!