General (main property discussion here) - Auctions

Has anyone much experience of buying property through auction? I'm tempted but a first timer and unsure of what to do... does one go in low and hope for the best or give a more realistic bid and hope no one else outbids it by far?

Joanne,

I have only ever bought one property at auction: so my experience is limited. However, as with any other business I started by asking myself a few questions:

· Define value. · Define worth. · How much am I prepared to pay for the property? · Does my total budget take into account any building, decorating, refurbishment costs? · Have all the essential finances been readied in principal?

This worked for me. If you know the area you are buying in, then as locals any direct questions you have (local shopkeepers are excellent for this).

Regarding bidding: I was told to be slow in my bidding and wait for the trend-setters to show themselves. This allows you to observe the price increase, if any, and also to potentially see your opponents. It also means you are not contributing to the price increase. When all is said and done, the bidding is slowing: place your bid. I found this useful as it meant I could judge the opponents voracity.

Hope it help, and good luck!

Regards, Malik

Hi Joanne, Don't get carried away by those around you.Stick to your budget and don't be pushed along by the auctioneer.Guide prices mean nothing,they are mostly set to drag people into the room.Beware of auctioneers taking bids "off the wall"( if a propery is not moving,auctioneers will invent bidders to push the price up,this is STILL legal apparently!)Go to an auction just to watch,and see the way it works.Look on ebay or Amazon for books on the subject. They will probably want a 10% deposit from you on the day so have funding in place. If you get really desperate,I think I have some books and info I could send you.Let me know through this forum. Most of all - Good luck!!

Most importantly, read through all paperwork available at the auction about the property. Things can be easily missed in all the excitment.

Make sure you go in the property before the auction, don't buy blind.

Mark

All this is fantastic advice thank you. Everything said makes sense. I've taken it on board to look out for trendsetters and have been on amazon and ordered a couple of books I think might be useful though thank you so much for the kind offer of the loan of your books Simon! I didn't know about the 10% deposit beforehand so I've made sure funds are in place. Interesting re: 'off the wall' bidding, can't believe that is still legal, terrible news! I'm off to a couple of auctions in the near future to get a feel for them before I take the plunge. Thanks all.

i've never bought at auction. don't fancy the "on the hammer" exchange. let us know if you do go ahead with anythiung. John

Start low... buy a car at auction!

LOL.

My very first car was from an auction. Some 5 minutes after signing for it and driving it away, it stalled and died at the first set of traffic lights!

I would suggest buying theoretically as a learning curve, then do a real one. It worked for me.

Regards, Malik

why do people sell at auction though? do they have something to hide (by avoiding subject to contract, etc)?

do they have sellers packs (presumably they have to give results of a survey, etc)?