Tips for buying UK property at auction (Reproduction)
By Ron Victor
Published 10/25/2007 | Real Estate
A lot of UK properties with development budding are now sold at property auctions. Property auctions could be quite daunting places for the layperson and if you are seriously trying to purchase at property auction then it is a good idea to go with and you must be an observer before you go on with purchase. You need to be prepared for the bid and must go with necessary preparation.
On the auction day visit the place before hand. Many UK property auction houses need you to get register as a bidder at the start of the sale. Check if this is the case and double check the catalogue entry as you would not desire to purchase the wrong property by accident. Stories of people grazing their noses and purchasing a house by error are very much exaggerated. The auctioneer would be noticing your whole body not just your hands and he would not misconstrue who is bidding and who is not.
Do not generally go with the first bid, try to avoid it. If a UK property is not well liked, the auctioneer might drop the starting bid to a lower level. You would not certainly want to pay more than you actually had to. As soon as you have entered the bidding, attempt to suspension for a second or two between bids. By slowing down the speed you could assist yourself to prevent your adversary from getting over-excited and bidding more than they planned to. Finally, do not on any account bid above your before agreed limit.
The down side of purchasing at UK property auction is the high possibility of inviting unsuccessful costs (many of your opponents would be actually professional dealers who would be buying for cash and are capable to estimate their own renovation costs. Their costs therefore would be much lesser than yours). The up side is that there are authentic bargains to be had. The dealers would characteristically be looking for a boundary of 20% plus financing costs. This margin could be really yours - if you purchase wisely at UK property auctions.