Professional Tips for Buying at Auction2018-06-15T10:53:26+00:00

Professional Tips for Buying at Auction

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If you’re looking to buy property at auction, you would be wise to follow some simple, but very important steps prior to attending. We hear from many clients who have settled on a property, gone into an auction, successfully bid and, after doing all this, suddenly have the plan change on them when more information about the property comes to light.

Follow the steps below to make sure you’re well prepared, because when the hammer falls, you are committed to completing the purchase!

Prior to Entering the Auction

  • Do a ‘practice run’ by attending an auction in which you are interested in no properties, to get an understanding of behavioural patterns and how auctions are played out.
  • Carefully check each lot and arrange viewings of any you are interested in and sense check the property against the description, inaccuracies could be a bad sign and require consideration.
  • Make sure you prepare initial financial arrangements to ensure you can complete on any properties you plan on bidding for.
  • Ask your solicitor to make initial enquiries into the property to ensure there are no nasty surprises. There may be conditions in the catalogue / online that should be reviewed.
  • Ensure you have planned exactly what you are willing to pay for the property and do not bid above this, no matter what.

On the Day of the Auction

  • Arrive early to make sure you’re settled and not unduly stressed before bidding even begins.
  • Take the required ID and make sure you can transfer the deposit, should your bid be successful.
  • Keep calm and stick to the plan – don’t change tactics halfway through, decisions in the spur of the moment might not prove to be wise.

Once the Auction is Over

  • Contact your finance broker to get your application moving straight away, remember, you only have 28 days to complete!
  • Instruct your solicitor to complete the transaction.
  • Ask for a list of required information/documents from your broker and solicitor. This way you can be sure there are no delays due to outstanding information. You will receive a lot of correspondence in a short time and it is easy to miss the small things.
  • It is wise to introduce your broker and solicitor by email and encourage a collaborative approach to completing the transaction, to ensure everything runs smoothly.

Things to Consider

Following a successful bid for a property, you will have to pay a non-refundable 10% deposit for the property and usually have 28 days to come up with the other 90%, failure to do this in time can result in loss of deposit.

As master finance brokers, we come across a lot of clients that are stressed out and well into their 28-day completion with no route of achieving the property auction finance after a decline, or after being let down elsewhere.

When you’re at a loss so late in the day, it can push you to take a less than ideal rate due to the time constraints. By following these steps, and discussing yours or your client’s needs well in advance, you can take a lot of the strain out of the process.

Feel free to contact ABC Finance today if you have any questions or call us directly on 0800 088 6008, and we’ll be happy to help.

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