| Copyright (c) 2008 Parmdeep Vadesha | | | | seller's pack which contains a survey, valuation and |
| Auctions are no longer reserved for investors out to | | | | other information on the property, you might still want |
| purchase property for the purpose of reselling it for a | | | | to get your own surveyor - just to be on the safe side. |
| profit. In recent years, more and more people are using | | | | Before going to an auction, make sure you have |
| property auctions as a method of finding homes to | | | | enough cash for the property's requirements. This is |
| buy and live in. | | | | important because a sale becomes legally binding |
| The main lure of property auctions is the price. Auction | | | | immediately. Once a bid is won, the buyer will usually |
| property is generally a bargain compared to those | | | | need to make a 10% deposit immediately and pay the |
| purchased through a selling agent. The bidding system | | | | remaining balance 28 days after the day of the sale. |
| is transparent, as you'll know for sure the amount that | | | | Therefore, do not go to an auction to bid if you do not |
| other bidders are offering. Furthermore, the auctioned | | | | have cash ready or if you do not have a firm |
| property can be yours immediately - usually about 28 | | | | mortgage arrangement. For this reason, first-time |
| days after the sale. | | | | home buyers should think twice about purchasing at an |
| To locate properties up for auction, locate the | | | | auction considering that most of these properties will |
| auctioneers in your area and sign up to be on their | | | | require extensive renovation work and a large upfront |
| mailing list. Auctioneers usually send catalogues or | | | | cash investment. |
| online information regarding the properties for sale in | | | | As they always say in property investment, fall in love |
| your area. A good catalogue contains the basic | | | | with the deal and not with the property. Take account |
| information such as the floor plan, the guide price and a | | | | of all costs and expenses involved in deciding on your |
| photo of the property. | | | | maximum bid such as solicitor's fees, arrangement |
| Since the prices of auction properties are often well | | | | fees to the mortgage broker, valuation and survey |
| below market value, it is easy to get all excited and | | | | fees, building insurance, moving costs and the |
| want to buy it right away. However, hold your horses | | | | expenses incurred in selling your previous home or |
| and first get a survey conducted. A surveyor will | | | | property. Remember that the reason for purchasing a |
| conduct a home buyer's report which will assess and | | | | property at an auction is to get a bargain, and not to |
| point out potential problems you may have on the | | | | spend more than necessary. Thus, factor in the other |
| property. If the property seems like it needs some | | | | considerations such as the amount of deposit you can |
| major work done, then get an estimate from your local | | | | afford, the true market value of the property and the |
| builder, electrician or plumber. Dirt cheap properties | | | | cost of repairs and improvements. |
| often have the caveat of entailing expensive repairs. | | | | With these tips in mind, you are all set to embark on |
| Factor in the cost of renovation to the price you are | | | | your first auction and come out of it with a bargain. |
| willing to bid. Though most auctioneers will provide a | | | | |