Get Started For An Auction

House rates are rising relentlessly and in the popular areas, homes are frequently under contract by the time estate agent’s board goes up. So homebuyers are looking for other sources than the local estate agents. Roughly 30,000 properties are being sold at auction in the UK each year - many at up to 40% less high street prices. Auction firms will usually focus on unusual and hard-to-value premises such as churches and village halls, as well as terrain and other commercial lots with potential for change to housing use. Cinderella properties in need of repair are often sold though these auctions. For this reason you might find yourself competing against the professional property developers.

So buying at auction requires very careful planning, awareness to detail and also nerves of steel. If you are victorious then the payment can be a dream house at a much affordable price - but except you do careful foundation that promise the auction bargain then it could turn out to be an expensive under-the-hammer horror. So it is worth to recall that some apparently gorgeous properties go to auction since they have some hidden extras like dry rot or strict planning restrictions.

How to get started

Nearly 200 companies are running residential property auctions each year in the UK. It is said that the demand for all sort of property at an auction is extremely very strong, and there is always a well-established advertise for houses and flats requiring renovation.

Most of the auctioneers will send catalogues for approaching auctions up to a month in advance. The property is usually advertised for three weeks before the auction day, during this time you can view it by arrangement. So this is the right time to make a methodical examination of the property and – essentially – the surrounding areas, to make it sure that it is suitable. If you make a decision to take the thrust, then let the auction house know that you are a serious candidate, so it can help to keep you informed of any further developments. Now it is also the time to have the assets surveyed, and to get a solicitor inorder to check the designation to the property and to arrange the necessary finance. The winning buyer would probably be expected to finalize the purchase within 28 days of the sale. You should also be arranged to insure the property from the instant the gavel sounds.

Set your highest bid

Estimate the entire costs of repairs, legal and surveying fees, decorating, removals, mortgage and any other type of expenses and then work out how much you are equipped to bid. Always keep in mind that the buyer’s premium would add up another 1.5 per cent or so to the selling price, and you should also have to pay stamp duty on top in addition.

The pre-sale price estimate is often wildly under the final sales price to tempt buyers to the auction. This can fluctuate throughout the pre-sale period so always try to keep in touch with the auction agent for regular update. The direct price that is usually set on auction day is usually within 15 per cent of the set aside price, which is the least minimum price that the owner will accept.