Tips for Attending an Auction

Whether you are attending an auction as a serious property investor, or a first-time buyer, it is worth knowing what you are walking into.

The more prepared you are and organised in advance, the better your chances are of grabbing your ideal property before the hammer goes down.

1) Plan Ahead

It’s no good just turning up on the day, you will need to plan at least four weeks in advance of attending an auction. Phone local estate agencies and look online to find out where auctions are being held in your area.

2) View As Many Properties As Possible

Once you have looked through the auctioneer’s catalogue start to circle properties that you like and narrow it down to about five. You should make appointments to see all of these and then narrow it down to a further two.

3) Get A Survey

It might look like a great bargain in the brochure but there is no way of knowing whether you are getting value for your money until you have viewed a property and had a survey carried out.

4) Set Yourself A Limit

Before you even set foot into a property auction you should know what your bidding limit is. It’s easy to get carried away on the day and over bid, so make a firm mental note of what your limit is and stick to it.

5) Arrive Early On Auction Day

Property auctions are popular places and can fill up quickly. Aim to arrive at least 30 minutes before the first property is shown, this will allow ample time for registration and to get a good seat. Once you have registered you will then be given a number, usually on a stick or piece of paper, this will be your bidding number so look after it.

6) Make Sure You Have The Correct Documentation

It’s no good showing up to an auction with no identification or proof that you can actually purchase the property you are bidding for. You don’t have to show up with your pockets bulging full of £50 notes but you will need to provide some basic paperwork. You will need at least one form of identification, preferably something with your photograph on such as a passport or driving licence.

It is also worthwhile taking along any agreement in principle you have had from a mortgage lender which shows if your bid is successful you have a mortgage in place. Once you have successfully bid for a property you will have 48 hours to pay the deposit.

7) Don’t Give Up

If you are not successful with your bid, it does not necessarily mean you have to walk away empty handed. If the property you are after if quite common, for example a two bedroom terraced house or a flat then it may be worth your while looking through the properties at the end if the auction that went unsold. You may be able to do a deal with the auctioneer and buy one at a discounted price.

8) Make Yourself Known

If you are successful in your bid you will normally have to find the registrar and give them your bank details/method of payment at the end of the auction. You will not get the keys until you have paid for the property.

9) Act Quickly After The Auction

Just because you have won your bid it doesn’t mean you can put your feet up. Once your bid has been accepted by the auctioneer you will have 48 hours to pay your deposit between 14 and 28 days to get your mortgage in place.

Preferably on the same day as the auction you should telephone or visit your mortgage broker or lender to try and speed the paperwork through, as you don’t want to lose your property.

10) Enjoy The Experience

Buying at auction can be stressful, but it is worth remembering that property auctions occur on a weekly basis, if you are unlucky in one there will always be the next time, so try and enjoy the experience.

Buying at auctions is not for everybody, some people thrive on the fast paced atmosphere while others find it is their worst nightmare.

It is easy to get carried away on auction day which is why it is important to know exactly what you want before you start bidding, remember that something isn’t a bargain if you didn’t want it to start with.