01245 344 133
020 8741 9990
The Essential Information Group offers
a property auction search service
01737 232 289, eigroup.co.uk.
More than 30,000 properties go under the hammer every year and buying property at auction is the established method of choice for the investment buyer. However, when you bear in mind the fact that buyers can save up to 40% on high street prices, auctions should be something we're all interested in, particularly first time buyers.
1. It is not advisable to bid at the first auction you attend. Get a few attendances “under your belt” so that you can get a feel for the procedure.
2. As would be the case when buying property anywhere, check out what similar properties in the area have been sold for, to avoid paying over the odds. You can do this with local estate agents or on the internet at sites such as houseprices.co.uk.
3. Properties with a short lease (typically less than 65 years) are often sold at a relatively cheap price. Once purchased it is normally a fairly simple task to increase it, adding value.
4. Make sure that your mortgage lender is able to complete your application within three weeks of the auction. If you can’t come up with the money within 28 days you could lose your deposit.
5. Be on the lookout for previously unsold lots, as both the auctioneer and vendor will be keen to sell, possibly taking a lower offer and bagging you a bargain. However, do your homework on this – there may be a good reason why the property hasn’t sold.