Property Auctions and Money: beware!...

One of the things that many people do not realise when attending a property auction when they intend to bid is with regards to the money.

When you buy a property through an estate agent and through the normal process in general you will then have a long stage where you go through the motions of completing the purchase and arrange a mortgage, so there is plenty of time to sort out the finances.

However when you buy at auction speed is of the essence and you will need to be able to pay off the whole sum at speed. Therefore you need to ensure that you will be able to access the full purchase price, and quickly too.

Typically you will have around 14 days or so in order to complete the transaction so you need to have your financial house in order before bidding at auction. Also remember that you usually need to give a deposit on the day, say 10% of the purchase price, so again you should ensure the finances are sorted before bidding on a house else you will have a rude awakening after winning a lot!

Re : Property Auctions and Money: beware!

Anyone else got property auction related tips?

With the property market seeming to stabilise and indeed house prices generally starting to increase again I imagine that confidence and audiences are also starting to return to the property auction...

Re : Property Auctions and Money: beware!

Yes, I would suggest that when buying your first property at auction you should look for something fairly local to you.

There are enough variables when buying at auction and it takes time and experience to get used to them all.

One big unknown with buying at auction can be what an area is actually like - therefore by getting the first auction property you purchase near you at least you eliminate one of the unknowns as you should naturally have a better feel for what the market is like near you and the value of properties around the one you are buying compared to other places in the country where surprising information about desirability etc can crop up after you've brought at auction and it's then too late!