Buy a Property at Auction

Buying at auction is one of the few ways of getting a bargain on the property market - if you don't mind taking a few risks.

Steps.

1. Scour the internet for specialist property auction site - all of the established auctioneers will have an online presence. (Enter something like "property auctions UK" into any web search engine.)
The first listing is ideal, so to help you I will give you the link to the site: http://propertyauctionaction.co.uk

2. Make sure you have the finance in place beforehand. You are unlikely to get an agreement for a mortgage on an auctioned property. (I know its self evident, but some of us forget the small details !!)
(Although you could buy using a loan - with a substantially higher interest rate - and then get a mortgage to pay off the loan once you have purchased the property).

3. Order a catalogue for any upcoming auctions that interests you. (There is usually a substantial charge for these).

4. Note the details of any property that interests you. It will be listed with its 'reserve price'  - the lowest price the vendor will allow the property to be sold.

5. Visit the property. If you intend to bid, have a professional survey done beforehand. This will reveal nay major structural problems, and give you an estimate of its actual market value.

6. Before the auction, decide on the maximum figure you would be prepared to pay. Don't (and I mean Don't) go above it - it's easy to get carried away in a bidding war.

7. At the auction, place bids by raising your hand. Some auction houses will allow bidding via the telephone or the internet.

8. When the gavel comes down, if your bid is the highest you are deemed to have made a LEGALLY BINDING CONTRACT.........!!!!!!.

9. Be aware of what is covered by homeowners' association insurance and what the association is responsible for, such as roofs, common areas, and landscaping.

Tip.

If a property you buy at auction turns out to be a dud, you have little comeback. This is only a route for risk-takers!