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.
