Here are 6 tips for making buying property at auction a stress-free experience.
1. Research the property and its location
The area surrounding a property is just as important as the property itself (or sometimes even more so). Try not to get swept away with the auction process, ask yourself if you would still be interested in the property if it wasn’t at auction?
2. Inspect the property yourself
If possible, get the property surveyed before the auction. This way you will be able to identify any issues that could cause a problem when coming to insure the property, such as structural problems, which would result in problems obtaining a mortgage. Depending on the issue, finance can still be an option but at least if you are prepared before you go to auction you’re not going to have any unwanted surprises further down the line.
3. Read the legal pack
All auction properties will come with a legal pack, both young your solicitor should thoroughly read this. There are often legal reasons why properties end up at auction in the first place; your solicitor will be able to uncover any issues within the legal pack and will advise you on how to go forward.
4. Get your financing pre-agreed before auction day
If you are needing finance to pay for your auction property then make sure that you have the funding agreed before the auction day, even if it is only an Agreement in Principe. This will give you peace of mind that you are going to auction in a secure financial situation but will also save you time.
5. Do your research when choosing your solicitor
Pick a solicitor who is well versed in the auction process and can so that they can turn things around quickly. If you are taking bridging finance, then the lender will usually have separate legal representation from you. Hence why it is important that your solicitor is used to the system.
6. Know your limits
Do not treat auctions like a gamble, know your maximum bid before you go to auction and stick to it. Lenders will only lend against the lower of the purchase price or market value so if you pay too much, you could find that you cannot borrow as much as you need.
Contact Laybourne today to discuss how we can help you source appropriate funding if you are looking to buy at auction.
by Steve George