Guide to Buying a Property at an Auction

Buying a property through an auction has become very popular these days. There are more than 400 auction houses around the country offering not just antiques but also residential units that are lapped up by investors and common buyers alike. This is because it allows you to buy a property very quickly unlike the traditional buying route. Even though auctions are great to secure a bargain deal, there are certain things you need to know to make sure you are not caught unawares.

Learn about the auction places

There are many resources on the net containing information about auction houses. You can learn about the listings in these auctions and know about the residential properties that have successfully gone under the hammer.

Look at the property

It is very important to take a close look at the property that you are interested in before taking part in an auction. The listing will only tell you about the positive features of the property and you need to find out the actual condition of the property. Make use of the block viewings where interested buyers are shown around the property before the auction.

Get your deposit ready

You will be asked to have 10% of the estimated price of the property ready in your bank account. Also, do not forget to carry your ID along with you. You are given 28 days to complete all formalities after a successful bid. So, make sure that you have your financing in place before participating in the auction.

Guide and reserve price

Guide price is the maximum price at which the seller expects his property to sell. There is also a reserve price that is lower than the guide price. This price is known only to the seller and the vendor and it is the minimum price that the seller would accept to sell his property. There is no point in attending an auction if you feel that you cannot afford this reserve price.

Set your limit before the auction starts

The atmosphere is charged at an auction and people continue to offer higher bids swayed by the emotions. Know your upper limits so that you do not place a bid that you cannot afford easily.

Attending the auction

Get the feel of the atmosphere to make you comfortable at the auction. Get answers to any doubts that you may have in your mind before the auction starts.

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