While online real estate agents and in-person agencies are a great way of looking for your ideal property, property auctions are another fantastic way of purchasing your home.
However, as exciting as auctions are, they are not for the faint-hearted – and it can be incredibly tempting to get caught up in the moment and bid more than you initially intended.
The team at onlinemortgageadvisor.co.uk have come up with their top tips for what to bear in mind when you attend a property auction to ensure you are not left out of pocket.
1. Get your finances in order ahead of auction day
Putting a budget in place ahead of your day at the auction means you know roughly how high you’re willing to go as well as making sure you’re not getting swept up in the excitement of bidding. The good thing about an auction is you can buy a property using a mortgage, but with completion times being as short as 20 working days, it’s imperative you have the finance part in place before you start bidding. A lot of auction purchases are also funded using bridging loans or auction finance, so you have quite a few options to consider before bidding.
2. Make sure you’ve viewed the property
Much like buying a property through an estate agent, it’s vital you view the property before you start bidding. The auction house will arrange the viewing and someone will be there to let you into the property, so you can have a good look around and make sure it’s the right property for you.
3. Don’t get carried away when bidding
Auctions are such fast-paced environments it can be easy to get caught up in the atmosphere and end up bidding more than you initially budgeted for. Make sure you stick to your budget as it’s important to remember, you set it for a reason. Once the gavel falls, you will be committing yourself to the purchase through a reservation agreement, so it’s important you’re able to afford the property.
4. Auction time scales are much faster
The process of purchasing a property through an auction are much quicker compared with a regular private sale. This is mainly because contracts are exchanged as soon as the bidding is over. Make sure you’re clued up on the legality side of the sale and ensure you have your finances sorted before the date of completion.