Advice for buying a property at auction

Michael Anthony Estate Agents are now offering properties for sale through auction.

By partnering with leading property auctioneers, Network Auctions, buyers will benefit from a vast range properties that often do not come to market. Sellers will benefit from comprehensive regional marketing techniques that ensure maximum numbers of interested parties bid on their properties.

With Network Auctions events taking place across the country at regular opportunities, do keep an eye on the Michael Anthony Estate Agents Facebook and Twitter accounts or visit: https://www.networkauctions.co.uk/ for more information. You could grab a property of immense value.

Preparing for buying at an auction
Buying a property at auction can be thrilling, but will require the same level of investigation as viewing a property through an estate agent such as Michael Anthony. In fact, all your research and deliberations need to be undertaken before the auction, because once your bid is the winning bid, it’s your property.

It’s also worth explaining that spur of the moment purchases are rarely successful. To succeed, you need to have completed your homework, be comfortable with what you are bidding on, your budget (including auctioneer’s fees) and be confident you have the funds in place.

Before the auction

  • Get to know which auctioneers specialise in the area of property you are seeking, in the region of the country you’re seeking to buy in. It’s a good idea to sign up to news and alerts from agents specialising in auctioned properties.

Finding the right property and inspecting it

  • Once you’ve found an auction, request the catalogue and understand what properties going under the hammer. Once a property piques your interest, arrange with the auctioneer to view – before the auction. This is likely to be an accompanied viewing.
  • The auction listing in the catalogue should guide you on the state of the property. Often, auctioned properties need work, so it might be wise to take your appointed surveyor with you. This is a wise move, purchasing a property that is later condemned still leaves you with the bill!

Research

  • Research the property, the community and other properties that have sold previously in the region you are buying. Guide prices of properties are set low at auctions to entice in bidders. At this point, true market value means very little so knowledge of what the value of the property in peak condition is crucial.

Legal matters

  • Getting your legal team ready is also a wise thing to do. There will be legal pack issued by the auctioneers before each event for each property. This will cover aspects of the property that are key, for example freehold? How long is the lease? Is planning permission approved? Are other dwellings being built nearby thus impacting the property you are bidding on? Is a train line due to laid close?

Your finances

  • You will also need to make your financial arrangements known prior to auction. You must have a 10% deposit ready on auction day, and you must deposit the remaining 90 per cent within 28 days. If you need a mortgage, it is prudent to have discussed all the financial implications with your lender, and have arranged a mortgage in principle. Therefore, as we mentioned before the surveyor will be important for the lender (if required) to agree to release funds.
  • And the balls still need to be juggled!

At the property auction

  • Have a fee for the property you are bidding on in mind and stick to it. Remember auctioneer’s fees on top need to be added after the gavel drops. The fees vary from auctioneer to auctioneer, so have this in mind and ask what these are being bidding commences.
  • Be confident.
  • Don’t let emotion take over. Couples buying the next family home tend to show a lot more emotion than investors, who are less emotionally attached.
  • Don’t be afraid to bid in uneven increments. After all the auctioneer wants to see the property sold, so try going at your own pace.
  • If the property meets and passes the figure you have in mind and have budgeted for, walk away.
  • Many auctioneers permit telephone bidding or bidding over the internet, so ask the auctioneer beforehand. You might not need to be in the auction room at all.

Contact your local Michael Anthony Estate Agents for more information when the next property auction is.

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08.06.17

By Chris Phillips


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