Auctions are a great way to add to a buy-to-let portfolio, with a wide range of bargains often going under the hammer. But as any shrewd buy-to-let landlord will know, there is more to buying property than simply turning up and making a bid.
Among the many attractions of buying property at auction is that purchasers avoid the conventional drawn out process of property buying, as the property is sold in a matter of minutes as soon as the hammer falls.
But before attending and bidding on property at auction, investors must conduct all necessary due diligence.
Have you carefully read the conditions printed in the catalogue? Have you made financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days?
It is highly advisable that prospective buyers that are new to auctions sit in on at least one sale before taking the plunge.
Contact the relevant auction house and request their catalogue, conduct all necessary property viewings, get a survey done pre-auction if possible, and hire a lawyer to review all legal documents.
It is also important to read around the subject matter to gain top tips and advice to securing a potentially below-market property investment at auction.
For anyone looking to buy their first property via auction, check out Buying Bargains at Property Auctions. This book provides a clear, step-by-step guide to what happens pre, during and post auction, and is therefore well worth a read.
This is the latest edition of the late Howard Gooddie's bestselling guide, which has been revised and updated for discerning property investors. It shows just how simple buying property at auction can be and reveals the tips and practices of what can seem like a rather daunting process.
Whether you are looking to purchase a property for yourself, or buy a home for investment purposes, the book importantly removes much of the mystery surrounding this relatively unknown world, illustrating some of the pros and cons of buying at auction along the way.
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