8 Tips for Purchasing a Property at Auction

News Posted: February 16, 2024

When buying a property at auction, the sale is agreed as soon as the hammer goes down, so a purchaser needs to ensure they are aware of all potential issues before committing to the purchase. The key is to ensure you have carried out sufficient research before auction day.

Here are 8 tips to help get you prepared for auction day:

1. Compare local properties on the market

You need to have a realistic price in mind beforehand, so compare other properties on the market locally.

2. View the property

While it may seem obvious, make sure you view the property before auction day.

3. Consider the cost of renovation

If you are looking to renovate, take a builder or architect with you to view the property before the auction. They may be able to give you an idea about the potential cost to renovate.

4. Carry out a survey

Consider carrying out a survey beforehand so you have knowledge of any potential structural issues.

5. Set your budget

Set a budget so you don’t get carried away with the excitement of the auction on the day.

6. Prepare your deposit fee

Be prepared to pay a 10% deposit on auction day. There will probably be auctioneer’s fees on top of this, too.

7. Ensure that your finances are in order

Ensure that you have your finances in order beforehand, particularly if you are not a cash purchaser. Additionally, ensure you have a mortgage in principle in place, so you can start the application process as soon as possible. The completion date is usually 28 days following exchange, and this gives very little time for the mortgage offer to be issued and ensure there is enough time for the lender to release mortgage funds for the completion date.

8. Get the legal pack checked

Make sure that the legal pack has been checked by your solicitor beforehand. There could be covenants, lack of rights or other defects in the title which you may not be aware of, which influence whether you actually want to purchase the property.

If you are thinking of purchasing an auction pack, our Residential Property Team are here to help – we can also review the legal pack before you commit to the purchase. Call our team on 01743 248545, or get in touch by sending an email to mail@hatchers.co.uk.

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