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Expert Tips for Buying at Property Auctions

By Parmdeep Vadesha

Republish: EasyPublish™ Published: 13Oct2008 Word count: 546 Viewed: 92 time(s) Get Free Content For Your Site

All across the United Kingdom, thousands of properties are being sold every year at a property auction. Many first time property investors and seasoned buyers have found their dream investment properties at an auction, usually at a price well below market value. No longer are auctions reserved for the wealthy and the astute. In fact, just about everyone can join in on an auction, and with much preparation and a little bit of luck, you might just walk away with a very good bargain.

Many property investors have found success and profit at a property action. For the novice investor, however, an auction can be quite a daunting experience although it is a very good place to start. The most important thing to keep in mind is that an auction is not a game. Remember that your goal at the auction is not to purchase the property no matter what cost but to come out with a bargain. While the bidding wars can be heady and exciting, do not get too caught up on it that you lose sight of your goal - to purchase the property at a price well below market value.

Here are some expert tips on how to keep your cool and stay on guard as you participate in an auction:

* Observe. If it is your first experience at a property auction, it is advisable to go to one beforehand without actually joining in. Attend an auction as an observer so you can see how the process goes about an how the pros do it. If you have a trusted friend who has had some experience at auction sales, then it would be better if you can bring him or her along. A well-versed person can explain the process to you so that when you embark into the tangled world of auctions by yourself, then you would know what to do.

* Investigate. Research is undeniably the most important part of the whole auction purchase. Since you do not want to end up with a worthless property that nobody wants to take off your hands, then do some research beforehand. Once you have found a property with potential, the first thing you should do is to know all that you can about it. Know the basic facts such as the size of the house, the basic facilities, who the previous homeowner was and the kind of amenities that it includes. Finally, the most important part is to know the properties value. Of course, you have to know if you are indeed scoring a bargain or if it ends up being overpriced. To know if you are getting the value for your money, know the prices of two or three similar properties within the same locality. This will also give you a good idea of the price range that you should bid for come auction day.

* Be financially prepared. Even before going to an auction, make sure that your finances are in order. Auctions generally require a sizeable sum as deposit upon the fall of the hammer on auction day itself. Moreover, you will be required to shell out the balance of the purchase price 28 days after the sale. This requires you to have the money ready even before the actual auction day.

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