Property Investor Guides: Property Auctions

Many first time buyers are dipping their toes into the high risk market of Property Auctions.

Property Auctions are a good way to save money and get the property you want. Bargains can be snapped up well below market price allowing the first time buyer to make that first move onto the property ladder.

If you are unfamiliar with Property Auctions we would recommend you do your home work and research carefully.

• Visit a property auction - We would always suggest that you attend an auction to 'get a feel' for the auction process itself. It is also a useful opportunity to perhaps ask the auctioneer any questions you may have.
• Finance - Unlike an estate agent purchase, beforev you bid at the property auction you will need to have your enough funds to pay your deposit on the day of the sale (usually 10%) plus you will have to have your mortgage in place to pay the balance if you are successful which usually is due 28 days later.
• Survey - We would always recommend that you have a survey undertaken prior to attending the property auction to ensure that the property is sound. If you are taking out a mortgage your lender will wish to have their surveyor assess the property prior to the sale date.
• Choosing the right property at auction - It is important that you are careful in your selection of the property you wish to buy because any survey costs are payable by you, whether you are successful at the property auction or not. Research the market carefully to find a selection of properties and arrange with the auctioneer a viewing as soon as possible.
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