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Property Auction Tips
How To Profit From PropertyHaving recently learnt that the decision has been made not to offer the tax benefits associated with putting ..... Here are some simple, common sense tips to help you when buying at a property auction.
Visit any property you are interested in before the auction. People do buy with out viewing but they run a real risk of financial disaster. Any problems with a building are costly and some of them can double or triple your costs. Even better, get a survey done.
If you've never bought from auction before you really should attend at least one property auction prior to your first attempt at bidding. That way you can get used to the heady atmosphere that surrounds the spending of large amounts of money. Even seemingly quiet, slow moving auctions can feel very tense as bidders try not to give away their intentions.
The greatest danger at auction is, of course, getting carried away. If you're bidding on a house for your own personal use this is especially likely, in which case know your limit and take someone neutral along with you to tell you to stop if the worst happens. Even better if you suspect you may keep bidding over your limit get a friend to bid on your behalf. A sensible, level headed friend of course!
And remember that lovely, smiling auctioneer is not your friend! Part of their skill is to persuade bidders in the most silkily way that if they bid "just" another £1000 that house will be theirs. They can sound very convincing but they’re really only interested in increasing their commission.
Always make sure that you have the necessary finance in place to complete the sale within 30 days. Don't just assume you'll easily get a mortgage within that time period. Properties that end up in an auction often have problems that make mortgage companies reluctant to lend on them. If you can’t come up with the money you will lose your 10% deposit and, even worse, could be sued for breach of contract. You could find yourself thousands of pounds out of pocket.
With the new money laundering legislation that's recently come into force make sure you have the relevant pieces of documentation with you to prove your identity if you're planning to bid. Check with auctioneers as to what they want as proof. And remember to bring it with you. You don't want to lose out just because you've forgot to bring along a utility bill!
Find out more about property auction tips or even repossessed property auction at Property Auction Database.
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