Tips on Buying Property at Auction for First Timer

During these recent years the use of auctions to buy or sell properties has become extremely popular. Take a look at the following tips whether you are a buyer or a seller, they might give you some inspiration.

1. Research
Research the property carefully by asking some trusted source such as estate agents, friends and relatives that participate in an auction before. Read and check the description of the lot in the catalog is correct, because auctioneers have all sorts of disclaimers to avoid liability here. You can also subscribe to catalog mailing lists and ask questions like, why is the property on sale?

2. Visit an auction as an observer
Go to an auction and experience the situation and how things work before you go for real. Auctions are deceptive than they look.

3. Visit the property
Go and visit the property and have a look weather the property is the with the correct specs (such as vehicles) and if its house purchase, check the location crime rate, amenities, schools and so on and refer back to the price weather is reasonable or not.

4. Make finance arrangement
Make finance arrangement to make sure you have enough deposit ready for the payment on the auction day and contracts will be signed. You will need to pay 10% of the cost of the property before you leave the auction and the balance has to be paid in full, and the purchase completed within 28 days.

5. Additional costs
Other than the product price, you have to take into account of the cost of surveys and legal advice. You will also have to pay 1% stamp duty on properties costing between £120,000 and £250,000, 3% on properties costing between £250,001 and £500,000 and 4% on properties over £500,000. Moreover, auctioneer may demand a buyer's premium equivalent to 1.5% of the sale price and every now and then, sellers ask for the auction fee and legal work to be paid for by the buyer.

6. Current day of auction
You need a cheque to cover the 10% deposit and identification as well. Get to the auction early in order to get a good seat so the auctioneer can spot your bidding signal. When the bid is about to be closed, there will usually 3 times calling, and it will sold to the buyer who has the highest bid among everyone.