Property Auctions | Property Classifieds - Rent, Sell Or Buy For Free

Buying a property at auction can be a good way of picking up a bargain and making a bit of an instant profit. You can reduce the price of a property by 15-50% however most people will never take advantage of this. Not many people know much about buying a property at auction and so steer clear. Hopefully with a bit of advice and research, you may be tempted to delve a little further, and maybe even give it a go.

Understanding property auctions
Buying a property at action can be a daunting task; many people enter into it under prepared and end up buying a dud property or getting caught out by extra hidden charges. However with a little research you could be on your way to picking up a bargain and perhaps even getting the home of your dreams.

Property actions are regularly used by financial institutions to sell on homes they have repossessed and also by developers, investors and owner occupiers who need to achieve a quick sale. Property Auctions offer a quick sale on a specific date and the purchaser, or the vendor for that matter, cannot change their mind once the hammer has fallen, as this is contractually binding. A wider variety of commercial and residential properties are offered at auction. As well as renovation projects, you could find specialist auctions offering rural and more unusual properties for sale.

Before you attend an auction you need to be prepared; it's a good idea just to go along and sit in on a few auctions to get a feel of what is happening so you're not shocked when it's your turn. Before you go, get a hold of the auction house property list, which will be published around four weeks in advance of the sale. Decide what kind of property you are looking for and view any properties in the brochure that you might be interested in. Sometimes the auctioneer will arrange group viewings for properties that they think will be popular, so you might find yourself being shown around the property together with other potential bidders. Make sure you read all the details carefully so that you know what you're getting into. When viewing the properties do as much research as you can and try and ask the estate agent and neighbours what they think. Also make sure that the description of the lot in the catalogue is accurate, you want o make sure that the vendors are not trying to hide anything. It is worth noting that each Lot is sold subject to the Notices and General Conditions of Sale printed in the property auction catalogue.

Legal documents and surveys
The vendor's solicitors should provide a legal pack with all the copies of legal documents that you and your solicitors might need. The Legal Pack should include where appropriate copies of Title Deeds, Leases, office copy entries, planning permissions and answers to standard enquiries. These packs are available from the Auctioneer or the vendor's solicitors prior to the property auction and are usually available for inspection at the property auction itself. You should expect the Auctioneers to levy a modest charge of approximately �10 to �20 to supply the legal pack.

The vendor's solicitors may also draft additional conditions applicable to their lot. These are known as Special Conditions and are not always printed in the brochure, so you'll have to request them. They form part of the Contract of Sale and it is very important that you and your legal advisors satisfy all of your legal enquiries and are fully aware of all conditions before you bid at auction.

It is also preferable to obtain a surveyors report prior to the auction, and if possible a full structural survey. This can obviously become costly if you are interested in more than one property, but it's good to have a professional opinion if you can and it will give you a clearer idea as to the true value of the property.

Money matters
Before the auction you need to make financial arrangements so that your 10% deposit is ready for payment on auction day. It's important not to be caught out by this rule. As soon as the hammer drops you have entered into a contract and are legally obliged to pay the money. You also must have the remaining 90% of the price ready within 28 days. It is therefore essential that you make financial arrangements in advance. If you need a mortgage then have this pre-arranged with the bank as you could loose your 10% deposit if you do not transfer the monies within the required time. If you need a bridging loan (a short term loan, usually taken out at a higher rate) then have this arranged in advance too.

It can be difficult to secure a loan for an auction property, most banks and building societies are reluctant to offer their services because of the time constraints. Also bear in mind that a lot of properties at auction are renovation projects and considered partially or even wholly un�mortgageable.

Bidding
In some cases it may be possible to make a bid on a property before the auction with the auctioneer. The vendor may still let the property 'go to the room', but there is a chance you will be able to secure a deal before the date of the auction.

When your lot comes up, make it clear that you are bidding as it can sometimes be difficult for the auctioneer to tell who is bidding in a busy auction room. There will be warning that the property is about to sell when the auctioneer shouts 'going for the first time�' and then the property will be 'knocked down' to the highest bidder. Bidding shouldn't be scary and if you've done your research and preparation properly then everything should run smoothly. However do have a maximum figure in mind and make sure you do not get carried away!

Finally don't forget that as soon as the hammer falls, the property is yours -- so you should arrange appropriate insurance immediately after the sale.