For those looking to snap up a property at a typically lower price, property auctions offer the opportunity to purchase lots that are often below market value. Thousands of lots are sold at auction each year in the UK, and these can vary from buy to let properties to land with development potential. Anyone can purchase auction property, and many experienced investors and developers in particular often choose to buy at auction to benefit from high return on investment and a relatively straightforward buying process.
If you’re interested in attending a property auction, here’s our advice on some of the most important things to consider to ensure your auction experience is successful.
Always Read the Legal Pack
Once the gavel falls at auction and you are the winning bidder, you will enter a legally binding contract making you liable to complete your transaction whether you have read the legal pack or not. Typically, you will only have 28 days or sooner to finalise the sale, so it’s important that you carefully read through the legal pack before putting any finances on the line. The auction property legal pack will include important information on the conditions of sale, so if you’re not a regular buyer at auction it is strongly recommended that you seek the advice of a solicitor before bidding. A solicitor is able to provide you with professional guidance on the legal pack, ensuring you understand exactly what you are entering into.
Research the Local Market
If you have your eye on an auction property for sale, do some research into the market value of similar properties in the area to avoid paying an over-inflated price. You’ll need to register your interest in the properties you’re interested in placing a bid on and attend viewings to thoroughly inspect them. It’s also a good idea to get a basic survey to highlight any major structural issues within the property and take a builder along to viewings to give you an idea of the costs associated with any work that may need doing.
Set a Budget
At property auctions, it’s easy to get carried away in a ‘bidding war’, so you should think about the maximum price you are willing to pay for the auction property and stick to it. You will need to decide in advance how much you can afford as well as working out your finances to ensure you are able to pay the full amount of your winning bid within the set time frame. Moreover, you should always be prepared for additional costs such as auctioneer administration fees and VAT.
As an auction property portal in Hull, we list the latest auction property auctions in Yorkshire and across the UK. As well as auction lots, we also list investment and development property for sale in Hull and across the country. To find the ideal property for sale by auction today, browse our auction property portal here.