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Top tips for buying at an online auction

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If you plan on bidding in an Auction you need to be prepared. We have outlined a list of must dos before the auction day.


1) Get your finances in order:

Have your finances in place prior to bidding. This will allow you to properly budget for the property. It’s good to assume that the property will probably sell for between 10 - 20 per cent over the guide price. Remember to include the additional costs associated with buying a property such as stamp duty, solicitor’s fees and survey costs. If you are borrowing the money ensure that you have loan approval in advance. It is important to remember that an auction sale is legally binding. On the fall of the hammer a contract exists and the successful bidder will have to pay 10 percent of the property price immediately.


2) View the property:

The Estate Agent may have set up predefined times that you can book or you can request an appointment. A lot of agents will have additional videos or 3D virtual tours that you can look at in advance. 


3) Organise a survey:

We strongly advise that you organise an engineer to carry out a structural survey before the auction. An engineer will be able to advise you on any work that needs to be carried out. 


4) Seek professional legal advice:

Prior to the auction have a Solicitor download the legal pack to review, so they can advise you accordingly. The legal pack will always be made available prior to auction to enable everyone to carry out their due diligence. If you want to query, or change anything in the conditions, you should do this before the auction.


5) Set a price limit:

Bidding at an auction can be very exciting. Don’t get carried away. Know your budget and what your maximum bid will be and stick to it!

 

6) Successful bidders

If you are successful at the auction you will be required to sign a binding contract,  pay a non-refundable deposit immediately and pay the balance on the closing date as set out in the contract. The balance is generally paid two weeks after the auction.