Can I Buy a Brand New House at Auction?

It’s a common misconception that when you buy a house at auction it will be an old, possibly run-down, house that you can purchase. It is an easy mistake to make to think that you would have to buy a run-down house but that is not always the case. Indeed there is a chance to buy a brand new house at certain auctions but you have to know which auctions sell which properties or you could end up wasting your time. Not all auctions will sell new builds so it is important to conduct proper research.

If you are looking for a little red convertible Mercedes and nothing else whatsoever will do then you don’t go looking in a showroom that only sells jeeps do you? The point in auctions is that they are quick and easy but you will waste your time and that of the auction house if you attend auctions that have no relevance to what you’re looking for.

Auction houses can get very busy very quickly and it is important that everyone in there is a serious buyer whether now or in the future. It is perfectly reasonable to go along to an auction to do a ‘dummy run’. Indeed it is encouraged since many people find auctions intimidating. Going along for a trial run gives you a feel for the way things happen. However if you are going along to an auction for a house that you never intend to buy you could be taking the place of a serious investor.

It is important you know what you want so you know which auction to attend. Then you need to find out what properties are included in each auction.

Speak To The auction Houses

The best way to do this is to speak with the auction house. They will have information on all the properties that will be up for sale at that auction. This way you’ll know exactly what properties are coming up and whether or not this is the right auction for you to attend.

New Builds

Many auctions specialise in new builds especially for house investors wanting to buy several lots i.e. several apartments in a block. If you want to buy a new build you must make sure the auction you are attending stocks the type of properties you are looking for. You may not get the same discount on a new build house as you would an older house.

Speak To Estate Agents

You should speak to an estate agent before you attend the auction to discover all the properties that are on offer and decide which ones you want to view. The estate agent will have local knowledge and will also be able to tell you of special auctions if what you are looking for is more unusual, a conversion for instance.

There is plenty of information and advertising available to inform potential buyers of what properties are on offer and at which auction house and time - so you’ll never miss your chance to bag yourself that dream house.