Tips on buying an investment property at auction
Thousands of properties have already been sold this year at property auctions. Auctions are growing in popularity with more and more people understanding that they are a fast, secure and transparent method for purchasing residential and commercial property at its true market value.
Savvy investors are coming to auction rooms to find the ideal rental property and are attracted to the method by the quick completion times, lack of property chain and transparent pricing.
If you are thinking of investing in property for the first time or, are an existing landlord who has never been to an auction, read our top tips on buying an investment property at auction…
Do your research
As a buy-to-let landlord you need to research the lot and its viewing schedule and also ensure that there is sufficient demand from tenants for the type of property you intend to purchase before placing any bids.
View the property and the legal pack
All of our auction catalogues come with a viewing schedule, we strongly advise that you view the property before the auction date to ensure you fully understand what you are paying for. It is also advisable to download the legal pack to ensure you have fully review the seller’s terms and conditions before placing a legally binding, winning bid.
Review your finances
On the day of the auction, you will need to pay a 10% deposit in order to secure the property and the remaining 90% to be paid 20 working days later. Before attending the auction, if you are not a cash buyer then we recommend speaking to a mortgage advisor about your options.
Place your bids
If you plan on bidding at the auction, you must bring with you proof of ID and of course, your 10% deposit. If you are unable to attend the auction then you can either nominate someone you trust to bid on your behalf (by proxy), or bid over the telephone. If you do want to bid either by proxy or by telephone, make sure you call the auctioneer in advance to find out all of the terms and conditions.