A Quick and Concise Guide To Buying A House At Auction

A Quick and Concise Guide To Buying A House At Auction

Bidding at an auction – Shutterstock

Many people prefer buying houses at auctions because it allows the conventional, time consuming process of buying a home to be avoided. Instead of waiting months to purchase and become the legal owner of a home, auctions allow this to be done in a matter of minutes. However, the fast paced nature of buying property at auction can leave people feeling a little overwhelmed, which is to be expected. Simply because in a few minutes, and after the smack of a hammer, a house worth thousands is now legally theirs. But aside from the fast paced nature, auctions aren’t all that scary. They’re actually pretty straightforward and fun. Read on to find a quick and concise guide to buying a house at auction.

Before The Auction

Get A Catalogue From The Auction House

Most auction houses have a printed copy and an email copy of their catalogue that is released a few weeks ahead. Whichever you prefer, just make sure that you get a copy.

Identify The Properties That You Are Interested In

Once you have the catalogue you need to sit down and identify all the properties in the catalogue that you are interested in.

View The Properties

The next step is to view the properties. This is usually done by arranging a viewing through the auction house. When you view each property always make sure that the description printed in the catalogue is correct and that things such as the electrics, plumbing etc. are all in good condition.

Thoroughly Research The Properties

It is essential that you don’t just rely on the resources of the auction house alone when you’re planning to buy a house at auction. It is vital that you do a little bit of your own research such as speaking with local estate agents and residents.

Always Read The Conditions Printed In The Catalogue

Reading the small print is something that has to be done when buying property at auction. If you don’t understand the conditions it is a good idea to seek the expertise of those who do such as solicitors or chartered surveyors.

Set Yourself a Budget

Once you have viewed and researched the properties, it is now time to determine your budget. Make sure that you consider any work that needs doing to the properties such as the electrics or the plumbing. It is best to make sure that these estimates are accurate by calling up local handymen directly. For example if you’re buying a home in Seattle you may call up someone like Fischer Plumbing Seattle.

Make Sure That You Have The Money

As soon as the hammer falls at auction you will be expected to pay a 10% deposit straight away, and the other 90% within around 28 days. Therefore it is crucial that you make sure you have the money to pay.

At The Auction

Take 2 forms of ID + All Your Banking Details

Having to two forms of identification is a necessary requirement at most auction houses and so is paying for the property once you have bought it. Therefore it is essential that you take two different forms of ID and your banking details so that you can process payment and prove who you are.

Take a Seat/Stand Where the Auctioneer Will Be Able to See You

Choosing a space where the auctioneer can see you is vital if you wish to make a purchase at auction. If you can get there early to secure yourself a good place then that’s even better.

Make Sure That Your Gestures Are Clear

Subtle movements won’t be recognized by the auctioneer so always make sure that your gestures are clear. Raising your hand high or nodding your head are the most common ways of making gestures when at auction.

That’s it

There you have it, a quick and concise guide to buying a house at auction. If you follow this advice buying a house at auction will be extremely easy and stress free. Happy bidding!