Auctions are a great way to acquire property competitively, with a wide range of bargains often going under the hammer. But as any shrewd investor will know, there is more to buying property than simply turning up and making a bid.
Among the many attractions of buying property at auction is that purchasers avoid the conventional drawn out process of property buying, as the property is sold in a matter of minutes as soon as the hammer falls.
But before attending and bidding on property at auction, investors must conduct all necessary due diligence.
Have you carefully read the conditions printed in the catalogue? Have you made financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days?
It is highly advisable that prospective buyers that are new to auctions sit in on at least one sale before taking the plunge.
Contact the relevant auction house and request their catalogue, conduct all necessary property viewings, get a survey done pre-auction if possible, and hire a lawyer to review all legal documents.
It is also important to read around the subject matter to gain top tips and advice to securing a potentially below-market property investment at auction.
For anyone looking to buy their first property via auction, check out Buying Bargains at Property Auctions. This book provides a clear, step-by-step guide to what happens pre, during and post auction, and is therefore well worth a read.
This is the latest edition of the late Howard Gooddie's bestselling guide, which I have revised and updated for discerning property investors. It shows just how simple buying property at auction can be and reveals the tips and practices of what can seem like a rather daunting process.
Whether you are looking to purchase a property for yourself, or buy a home for investment purposes, the book importantly removes much of the mystery surrounding this relatively unknown world, illustrating some of the pros and cons of buying at auction along the way.
Importantly, the author is from a family of auctioneers and so does a good job of explaining the auction process and exposes tactics used by auctioneers and bidding strategies.
Although some of the points made in the book are rather obvious, it does ultimately provide crucial research material without overloading the reader with too much information, helping investors to avoid the many potential pitfalls, build an appropriate investment strategy as well as a business plan.
So if you are thinking of buying property at auction it is certainly worth adding this book to your collection. It could prove to be the best investment you make.