Property Auction - Points to Remember

Article Written By: Andrewseo

Auctions are one of many methods used to buy and sell property. If you ask yourself, who really wins at an auction, the buyer, the seller or the agent? Once you have done the research you will see it is almost always the real estate agent. There are some points that you should be aware of and prepared for even before you step foot through the auction house door.

You should by now know what type of property you are looking for before you enter the building where the auction is being held. Do not just be prepared to bid on anything because it is within your price range. Most auction houses produce lots of catalogue before the event and you should have taken the time to select the properties you are interested in beforehand.

You need to assess what sort of work needs to be done on the property and how much this is likely to cost to see if it fits within your total budget. Similarly you should also know what the potential rental income might be. Therefore, confine your bidding to properties that fall within your specific requirements.

In various cases, property you buy at auction will be sold "as seen". It is important to know that before you buy any property take out time before the auction, date to conduct as much research as possible into the state of the property, the area and what is likely to happen in the near future locally. Also, take out time to check out the prices of similar properties in the area to give you a comparable against which to set your maximum bid price.

Similarly find out about the history of the property, who has owned it and what improvements have been made if any. Furthermore, check up with local authorities and service providers are there any difficulties surrounding the property arising from these areas, for example, a major local development.

Before attending the auction, make all necessary financial arrangements for the property you want to purchase. This amount should include all the costs that this type of purchase attracts, which is added to normal legal and search fees, must take account of the commissions that are payable to the auctioneer.

It is important that you arrive early on the auction day, so that you can listen the introduction speech the auctioneer will give instructions about the auction process, the methods of bidding and any changes in the lot number and other details you need to know in case of successful bid. Auctioneer will also tell about the costs involved in the auction process, with the commissions and other auction costs included. So it is important that you arrive few hours before the introduction speech.

Remember that the auctioneer is here to make money, so he or she will increase the bid amount. So it is always better to think and make the bid. There are several ways of bidding. For example, if you believe that others may fall away if a large bid is made and you are prepared to pay at that higher level you can indicate this to the auctioneer and wait for the reaction of other bidders.

If you succeed in your bid, you have to sign all the necessary documents with the auctioneer and pay deposit and fees, as well as arrange to pay the balance of the purchase price and give all the necessary legal information required on completion of all the relevant documentation.

About the Author

Andrew Wilson - Property auctions and UK auction list.

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