Every year around 40,000 properties are sold at auction in the UK - many at up to 30% below high street prices. Auction firms always focus on unusual, hard-to-value premises like churches and village halls, commercial lots with potential for change to residential property.Usualy properties which need renovation get sold though the auction. This is why most of the time you going to find yourself in competition with professional property developers.

To get property at auction requires very careful planning, full attention to details and good nerves. If you succeed the reward - dream house at good price. But if you don?t do carefully groundwork then your bargain could turn out to be very costly under- the-hammer horror. It is worth know that some superficially good looking properties go to auction because they have hidden problems like dry rot, strict planning restrictions, bad neighbors

Where to start?

About 250 companies run residential property auctions every single year in the Great Britain. One, estate agent FDP Savills, holds ten national auctions a year in London and seven regional auctions. It says there is very strong demand for all types of property at auction and there is good market for flats and houses which requiring refurbishment.

Every auctioneer will send you catalogue for all coming auctions at list one month in advance. That is time for you to do you homework. Examine property; surround area to make sure it is suitable. It is also time to have the property surveyed. Ask you solicitor to check the title to the property and arrange mortgage for you. If you are successful buyer you need to plan to complete the purchase with in 25 days of the auction. The list of auctions you can easily find online. You also need to be ready to insure the property from the moment you get it.

Before you go to auction set your highest bid.

You need to estimate the total costs of decorating repairs, surveying fees, mortgage, legal and removals and any other expenses ? and then work out how much you are willing to spend. Please do not forget buyer?s premium will add another 1.5 per cent on the top of selling price and also you need to pay stamp duty. Pre-sale catalogue prices very often wildly below the real sale price to get buyers to auction. Property prices can go up and down throughout per-sale period. Please keep in touch with the agent. The actual price usually set on auction day and it will be 10 per cent Of the reserve price which is minimum price the owner will accept. Once the price met reserve vendor legally obliged to sell the house to the highest bidder.

If you are successful bidder you will need to sign a legally binding contract after the auction also you need to pay ten per cent of the property price by cheque. Remember they do not accept cash. Try to attend auction a few times before you start bid. It helps to get confidence. Check all local estate agent just to see at what price similar property have sold for.

Posted by Azilda Duncan on December 13, 2008 at 12:00 AM

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