Buying a property from an auction can be an intimidating prospect. After all you are competing against professional developers and people with seemingly endless pockets. So why even bother trying, well they can be a great way to pick up a bargain if you know what to look out for. So let’s go over what you need to know and do in order to obtain a bargain.

Some of the pitfalls involved can be if you haven’t been at an auction before it’s easy to get carried away and spend more than you want. Also it’s not a matter of just turning up and buying a property at a drop down price, you have to do a fair amount of research and risk assessment, beforehand.The best way to not get burnt at a property auction is to have a top price and stick to it, but before this you have to do your research. Auctions can be risky places to buy a property, mainly because they usually sell properties that are rundown and often need major work.

The best way to pick up a good property is to make sure you have looked at least a dozen or so properties before you start bidding. This way you should have a good idea of what is a decent buy or not. I would also suggest doing some research as to what to look out for in terms of major structural damage and just cosmetic. It’s important to know the signs and be able to discount stuff that can easily be remedied. You can check out our article on DIY survey which will point you in the right direction.

I suggest if you are buying at an auction for the first time you should avoid properties on busy roads, flats in basements and properties that need major work, also be very clear on what you want and stick to it.

When assessing the risk you have to determine what work needs to be done and the cost involved in making it look like a home you can live in or sell. I suggest you start with the exterior again you can get more info from our DIY survey article, but here are a couple of pointers.

Stand well back from the property, check that the property does not look like it is leaning forward, back or to the side. Also look at the walls and check for cracks, especially under the windows. If you see any signs of the above this could be a sign of subsidence. Next, look at the interior and again paying special attention to the walls looking for cracks, you should also take a look at the roof and make sure there are no loose slates or worn tiles.

Another thing to look out for is damp. You should be asking yourself as you walk around the property are the floorboards spongy, can you smell a musty smell and do you see any mould, these are all signs of damp.

Lastly, ask how old the boiler is and look out for bodged DIY jobs a house that has been properly looked after will probably have less work to do.

Once the hammer goes down you are legally obligated to buy the property and have to complete with in 4 weeks. So make sure any decision you make is the right one.

Here is a link to an auction site:
www.propertyauctions.com

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