Adrenaline can run very high in the auction houses and before you know it, you have shouted a crazy number by the time the hammer falls. It does not feel well when the reality come in that all you wasted huge amount of money on is actually a white elephant (an expensive item that has no actual value). Auction sales may be the easiest, exciting, and cheapest way of purchasing property. You don't have to go through the normal hustle associated with complicated procedures in normal purchasing.
However, just like any other purchasing process, understanding the game, and a little bit of prior research can prove very valuable. The first information you need is the location of the property. This can be available from the magazines, property papers or an inquiry from the local agents can also help.
After locating the site for action, you have to get the property catalogue and spend a significant amount of time scrutinizing it. It is wrong to bid on properties on the spur of the moment as you can end up with what you don't require. Being prepared is far much better than relying on your instincts. With instincts, you are counting on luck, and as you know, luck rarely strikes twice.
After deciding on what property you are interested in, the next step is to physically view it. This is done by contacting the auctioneers and they get to inform you on the viewing day or guide you through in case viewing can be done on any day. In some cases, you may consider more than one viewing so as to be familiar with all facets of the property.
Some properties, especially houses, and land are likely to be in a poor state. As such, you need the assistance of a professional for a proper valuation. You should consider taking along a developer, an architect, or any relevant expert in the field to give you more insight.
After this, your next step is to determine the price range basing on the condition of the property relative to similar properties in the area. The expert can also be useful for this although you can also just compare prices with the properties available at the local property agent's office. The auctioneers usually start with lower prices so as to entice the prospective buyers, but with the right amount in mind, you will know where to stop bidding.
The other important step is to get your hands on the legal pact so as to understand the legal aspects that can influence the price of the property. This could be covenants or other legal matters and in case some issues are not clear, it is best to bring in your solicitor. The auctioneers should avail the legal pact when you conduct your visits.
Take care of finance issues well in advance and get at least 10% deposit on D-day. On the day, get to the auction house early enough, register and wait for the action to start. When bidding, always remember to have a price ceiling that you must not exceed. It can be very tempting to exceed the target, but it can be costly, just do enough prior research so that you know the right price well in advance.
However, just like any other purchasing process, understanding the game, and a little bit of prior research can prove very valuable. The first information you need is the location of the property. This can be available from the magazines, property papers or an inquiry from the local agents can also help.
After locating the site for action, you have to get the property catalogue and spend a significant amount of time scrutinizing it. It is wrong to bid on properties on the spur of the moment as you can end up with what you don't require. Being prepared is far much better than relying on your instincts. With instincts, you are counting on luck, and as you know, luck rarely strikes twice.
After deciding on what property you are interested in, the next step is to physically view it. This is done by contacting the auctioneers and they get to inform you on the viewing day or guide you through in case viewing can be done on any day. In some cases, you may consider more than one viewing so as to be familiar with all facets of the property.
Some properties, especially houses, and land are likely to be in a poor state. As such, you need the assistance of a professional for a proper valuation. You should consider taking along a developer, an architect, or any relevant expert in the field to give you more insight.
After this, your next step is to determine the price range basing on the condition of the property relative to similar properties in the area. The expert can also be useful for this although you can also just compare prices with the properties available at the local property agent's office. The auctioneers usually start with lower prices so as to entice the prospective buyers, but with the right amount in mind, you will know where to stop bidding.
The other important step is to get your hands on the legal pact so as to understand the legal aspects that can influence the price of the property. This could be covenants or other legal matters and in case some issues are not clear, it is best to bring in your solicitor. The auctioneers should avail the legal pact when you conduct your visits.
Take care of finance issues well in advance and get at least 10% deposit on D-day. On the day, get to the auction house early enough, register and wait for the action to start. When bidding, always remember to have a price ceiling that you must not exceed. It can be very tempting to exceed the target, but it can be costly, just do enough prior research so that you know the right price well in advance.
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