Buying a house at auction is a risky business. While you can end up with a bargain, many people fail to research their chosen property in advance and find themselves in a difficult position when unexpected problems become apparent following an unwise purchase. Here are some things to keep in mind if you’re considering buying a house at auction.

Researching your property

Doing the right research before the auction date is absolutely essential if you want to avoid making a very costly mistake. You will need Kamagra Gold to arrange a viewing of the property and explore the building and area around it thoroughly. Neighbours and local estate agents can give invaluable insights into the type of property you are buying, along with any potential issues or unexpected benefits involved in owning such a property.

Gaining a valuation

You will also want to gain a reliable valuation for the property. This may involve looking at similar properties in the area and finding out how much they have sold for. Finding out if there are any properties for sale on the same street online can be a good idea.

Speaking to local estate agents to get their opinion is also a good way to establish a valuation. Ideally, you will want to invite three estate agents to the premises to give their opinion, the average of these will usually be a good guide to what it is worth. Once you know the value of the property you will be able to assess far more accurately what is a sensible price to pay for it at auction.

Doing a survey

Organising a proper survey is crucial – otherwise you are likely to be met with nasty surprises following a purchase at auction. Depending on the age and overall condition of the house, you may wish to organise a Homebuyer’s Report or a full structural survey.

For properties over 150 years old, and for more unusual properties or those in a questionable condition, the latter tends to be a good investment. When the results come through do bear in mind that the majority of problems can be overcome, although you will need to factor potential costs into the overall price of the property.

A survey will cost several hundred pounds, and of course you cannot guarantee that yours will be the successful bid, but doing the right kind of survey may save you many thousands of pounds in the future so is highly recommended.

Preparing your finances

When it comes to buying at auction, things move a lot faster than usual. For example, you will be required to pay 10% of the purchase price on the day of the auction, and at this point the property is legally owned by you – there is no backing out. Within a further 28 days you will need to come up with the remaining Cialis Professional 90% of the money, and if you fail to do so, you are likely to lose the 10% already paid.

This is why organising your mortgage in principal, conveyancing, valuation and survey must all be done prior the date of the auction. As with any other property purchase, you will also need to consider taking on mortgage protection and other details involved with buying a property.

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Category: Finance/Mortgage
Keywords: mortgage protection,buying at auction,buying a house at auction