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Buying At Auction

Date Submitted: 18/07/2012   Author: Robert Macfarlane

There is no definitive answer but its certainly not for the faint hearted. In a funny way it reminds me of car auctions, you maybe lucky and get a bargain but equally you could finish up with a right old wreck and you're forever spending money on it.

On a personnel level I have been to a lot of auctions bought at auction and have no regrets. Its not however everybody's cup of tea. One thing is for sure its a quick process not a long drawn out sale once the hammer comes down that's it, you own the property in principal and need to pay a deposit with final completion in some cases 21 days later.

Easy said so where do you start? The first thing to do is contact a relevant auction house and request their auction sales catalogue. In general they are printed weeks in advance and the larger auction houses have regular auctions. You could also subscribe to their mailing list. I find them interesting reading and it gives you the opportunity to read the details and identify the properties you maybe interested in whilst at the same time ruling out others. Most auction houses will be able to give you a guide price so you can work within your budget. Once you have your shortlist, do arrange a viewing in some cases an auction house may arrange block viewings were anybody can turn up at a set time and date (These are listed in the catalogue).

Once you have viewed you will need to note the condition of the property. For example if buying to let is it in good condition Will I need a new kitchen

Perhaps it really needs a lot of TLC and this costs money. If in doubt or inexperienced take someone with you who has experience in property so you are aware of costs you may incur. If you are looking to buy to let it pays to check with a local letting agent such as MD Properties what sort of rental return you could expect on your proposed purchase.

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