There is no doubt that buying a residential property at auction can have its advantages,
- Properties can be bought at auction for very competitive prices
- The auction process enables you to buy a property quickly, and avoid the often more drawn out process of a conventional private purchase
To use auctions as an effective way of acquiring investment property you need to understand the process and the potential pitfalls. You need to make sure you know exactly what is involved or you could end up making a costly mistake.
Stephen Firmin, who heads the TSP Property Team, has written this very useful Guide to Buying a Residential Property at Auction. In the Guide he covers in detail the main points that you need to think about when considering buying an auction property, which are…
- Test the water – do a trial run if you are not familiar with the auction process
- Get the Auction Catalogue and Legal Pack quickly and review with your professional advisors
- Arranges for further legal searches and enquiries if necessary
- Visit the property
- Arrange a survey
- Do your research on the property and the area
- Make sure your finances are in order
- Where appropriate make arrangements for buildings insurance
- ….have a maximum price and stick to it!
The Guide can be downloaded in PDF format by clicking here.