Because more properties are being repossessed and sold by banks, the number of multiple property auctions throughout the country has also increased. Auctions are becoming a popular way of buying and selling good value property.
The following are some useful tips if you are thinking of purchasing a property at an auction:
1. It is very important that you contact your Solicitor well in advance of you attending the auction so that he can check the legal title to the property and the conditions of the contract which you will sign. Do not attend the auction unless you have been fully advised by your Solicitor.
2. Make sure you go and physically see the property and don’t just look at the auction website for details and photographs of the property.
3. Research the area in which you are intending to buy if you are not already familiar with it.
4. You should arrange a survey of the property before the Auction to ensure that it is structurally sound. You should instruct a qualified Engineer/Architect or Surveyor to do this on your behalf.
5. If you need a loan to purchase the property, be sure that you get approved for this loan first. You will not be allowed out of the contract if your loan does not come through and you need to be very careful in this regard.
6. Consult a number of local auctioneers to try and gauge the true value of the property.
7. Be decided as to the maximum amount you are willing to pay for the property. You should bear in mind the legal costs involved in purchasing a property which include Solicitor fees, stamp duty (currently 1% of the purchase of the property for residential property) and registration fees. If the property requires improvements, make sure you take the cost of this into consideration.
8. It is important to note that you will need to pay a 10% deposit at the auction and the remaining 90% generally within 28 days.
9. You will be required to bring to the auction two forms of identification and your cheque book.