Auctions are a quick and easy method to get the best deal on a property while skipping a longer sales process. Property auctions are an excellent method to get a great deal in a rapid transaction that bypasses the time-consuming procedure of traditional buying.
Purchases at auction are legally binding as soon as the winning offer is accepted. It’s critical to understand what you’re getting into and the potential risks before bidding at an auction. Qube Residential bring you some of their top tips for first-time auction goers seeking a new home or their first project.
Do your research
The best thing you can do as a First Time Buyer entering the world of property auctions is to arm yourself with as much information as possible. Do your homework and join the mailing lists of auction houses in the area where you want to buy. Look for auctioneers’ websites on the internet and get the legal packets of properties that interest you.
People you know who have purchased at auction should be able to help you. They’ll give you advice on the procedure and maybe some pointers on how to go forward.
Before you go to an auction with the idea of buying a property, it’s also worth seeing the process at least once beforehand. Purchasing a home at auction may be very competitive, and it’s tempting to get caught up in the thrill! Going for a visit ahead of time will make you feel more at ease and less out of your element.
Is it possible to buy at auction with a mortgage?
Yes, you may use a mortgage to buy at auction. Like most First Time Buyers, if you require a mortgage, you should begin the process as soon as possible, ideally before identifying a potential purchase. You will absolutely benefit from having a mortgage agreement in principle.
Always view the property
If you find an auction property you like, see it in person, ideally at different times of day, to be sure it’s perfect for you. This will also allow you to compare it to the description provided by the agents to confirm it is exactly as it seems. As a First-Time Buyer, you’re presumably hoping to live in this home, so if it requires a lot more work than it says it does, it can derail your plans.
Stick to your spending plan
When bidding at an auction, you may feel compelled to spend more than you expected, but remember never to bid more than you can afford. Your budget is in place for a purpose, so don’t allow your emotions to get the best of you – figure out how much you can afford and adhere to it. Otherwise, you might not be able to afford the 10% deposit required at the auction.