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Tips for buying property at an auction

Tips for buying properties at an auction:

Attend a few auctions as an observer to get a feel for them. It’s a good way to suss out the competition and learn a few useful ‘gestures’ for bidding. Also incredibly entertaining to see how others do it!

If you're nervous about the auction process (which isn't nearly as scary as it's made to look on TV) get your solicitor, surveyor or someone else to do the bidding for you. You can stand beside them or, if you can't stand the strain, stay at home watching and waiting for the phone to ring with the news!

You can make telephone bids. Auctioneers can arrange to accept your telephone bid and they will require you to give a maximum price. Good if you are calling from your yacht in the Bahamas, but otherwise there’s nothing quite like the feeling of actually being there amidst the cut and thrust of a days bidding.

Don't buy a property before you've sold yours, i.e., before the completion has happened (assuming you're relying on a sale to buy at the auction).

Set a price limit on the property you are interested in and stick to it. If you're doing the bidding yourself don't get carried away and exceed your budget. Just because someone else is bidding higher doesn't mean the property has suddenly gone up in value. Base your price limit on the valuation/survey which you have paid for beforehand.

Check the contract before the auction. Ensure you understand any particular conditions of sale and the auctioneers terms and conditions before you bid. Don’t forget, when the hammer falls, the deal is legally binding.

Ensure your lender agrees with your arrangements. If you have arranged a mortgage for the property check that your mortgage lender is satisfied with the valuation and is in agreement with your plans to buy property at an auction. You will face a delay in completion if this is not clear.

Let the buyer beware! Consider having a full survey done to protect yourself. Some properties for sale at auction have serious structural problems, which a simple valuation may not pick up. It may cost you more initially, but it will save you from a potentially huge loss and can even give you a good basis on which to bid or negotiate.