Get finance in place before the auction
Auction finance is in increasing demand from property developers and buy-to-let investors who are unable to secure traditional bridging loans due to the condition of the property or the speed of completion required. To bid with confidence at auction, you or your clients need one thing above all else. Peace of mind that the necessary funds will be available on time. When the hammer falls, a non-refundable deposit of 10% of the sale price is immediately payable. You then have 28 days to complete, though sometimes special conditions require faster completion.
We are a NO-FEE broker and always will be !
Our service is 100% FREE at no cost to you.
We are a NO-FEE broker and always will be !
Our service is 100% FREE at no cost to you.
Get in touch with THE fast bridging loan No-Fee Broker Today
What happens at a property auction
Preparing for the property auction
When the time comes for the actual auction, be prepared. The whole process can be quite daunting, and I often say to people that they should go on a dummy run and experience an auction as a spectator before going to one to actually bid. You don't actually have to be there in person, as you can bid by telephone. I have to say, though, that I prefer to feel the buzz of the auction room and to be able to look around and assess the competition.
The property auction
When you arrive at the auction, you'll need to register. Make sure that you bring identification and enough funds for your 10 per cent. Auction houses can be pretty crowded affairs, so get there early if you want a seat. When the time comes to bid, make sure that you can be seen by the auctioneer and that he is aware of when you're bidding - don't risk any of the casual scratching of the nose type bidding that you see in the movies.
Bidding
As the bidding increases, so will your heart rate, believe me. This is where you have to make sure that you don't get carried away. Try to have a figure in your head that you don't want to go over. It can be very tempting to go over budget, particularly if you've invested a lot of time and effort prior to auction, but try not to go silly. If you don't trust yourself, then you can get someone else to go and do the bidding for you.
If you are bidding on a property and it fails to meet its reserve price, this doesn't necessarily mean that this is the end of the matter. The auctioneers can still act as agents and are able to do a deal between yourselves and the vendors, if a price can be agreed at the end of the lot. This is often a good way to pick up a bargain, as a vendor might have been chancing their arm with their reserve price, but could be willing to do a deal after the auction. Likewise, it isn't unheard of for a deal to be tied up prior to auction, so it may be worthwhile checking this possibility out with the auctioneers.
Get yourself a bargain
Ultimately, whilst it can take time to do your homework prior to auction, and it is admittedly pretty nerve racking actually taking part, I believe that nothing beats buying a property at auction. I have recently purchased a house at auction myself, which I am currently renovating before it becomes our family home.
The thrill and euphoria at having a bid accepted, and knowing that it is a legally binding deal, is just fantastic, and if you've done your research correctly, then you might just end up getting yourself a bargain in the process.
