Before your first visit to an auction it can be hard to know what to do to prepare.
Before your first visit to an auction it can be hard to know what to do to prepare.
In our thought-provoking article, we take a look at the 5 best ways to ensure you make the most of an auction, which include
researching the property via a visit with a builder
looking through the catalogue and making a shortlist
consider a survey
looking at the legal pack
making sure the solicitors and funds are ready
Researching the property via a visit with a builder
With most of the Tungsten Management Group blogs we always mention that you need to surround yourself with a power team. The pre-work before an auction is no difference so arrange a viewing with your trusted builder. The builder will have to give you a cost of the works so that you know what your highest bid can be to make this purchase a deal and not a liability. The builder can also give you there opinion on the project plus tell you time scales and put there head in places you may not want to such as the cellar and loft!
Having another trusted person give you their opinion can be a great reassurance!
Looking through the catalogue and making a shortlist
The auction catalogue is normally released 4 weeks before an auction, so it gives prospective buyers a chance to look at the property and look at the legal pack.
Before you start to flick through the catalogue make sure you have your purchasing criteria such as location, size, condition, price. Having these parameters set will ensure you only consider and do the due diligence on the properties that suit YOU.
You can then have a look through the catalogue, make your shortlist for viewings and then from the viewings you can make a shortlist for purchasing!
Consider a survey
After purchasing 9 properties, I would not feel comfortable purchasing a house without asking a professional to survey the property.Â
To start, a survey will give you a detailed report on the property’s condition. There are two types of surveys so you must choice the one that is best for you but both reports will tell you about
Structural problems
Major repairs or alterations needed
Offer their commentary on the property
With all purchases including those made at an auction or not a survey will cost you money that is to be paid before you own the property. Some may see this as wasted money but I would see this as maybe preventing you buying a property with someexpensive surprises such as damp, roof, subsidence. It is very reassuring.Â
In the last purchase the surveyor found that the side left flank wall needed a lot of work to make if safe. We approached the solicitor who were able to bring the sale price down to reflect the buikders esytimate of costs.
Howells legal say it is a good idea to arrange a survey if:
you are looking to buy a very old or unusual property
the property has a thatched roof or is timber framed
the building is listed
you have any specific worries about any part of the property
you feel very unsure about what sort of condition the property is in
https://www.howellslegal.co.uk/surveys
Making sure the solicitors and funds are ready
One of the benefits of an auction is the speed of ownership. Once the hammer falls you have bound by the auction houses T&C’s to purchase the property in 20 working days after placing a 10% deposit down on the day of the auction. You will exchange on the auction day too!
There are high fees if you miss the deadline dates so make sure you have all your ducks in a row, and if you cannot complete at all you will lose the deposit and have to pay the vendors costs – this will be a very unwanted sting into purse.Â
Looking at the legal pack
Not looking at the legal pack before you purchase a property is a big error as it does not always work out like it seems to for those on the TV!
Before you an auction if is strongly advised to find a solicitor to help read through the legal pack. I am guessing that this is not your normal solicitor but someone who has experience with auction purchases. One of the auction benefits is the speed of a sale so you need those around you who add to the speed such as a competent solicitor.
You must have the mindset that you cannot know everything and be an expert in all fields so surround yourself with those who do hold the expertise. Ask the builders for their quote and thoughts on the property, call the estate agents and ask what they feel the local demand is and rental levels and ask a solicitor to look over the legal pack. No one has built a company completely in insolation.
It's essential to get yourself in the right frame of mind to start achieving the results you want.
It's essential to get yourself in the right frame of mind to start achieving the results you want. Once you are aware of these common drains on your time and results, it becomes so much easier to overcome them.
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