Auctions can be exciting to attend, although they are generally more relaxed affairs than you see in Hollywood films. If you’re thinking of buying a property at auction there are some things you need to be aware of, and a few tips that might help you to be successful in bidding for the property you’re after.
Attend Some Property Auctions
If you have never purchased a property at auction before, it can be useful to attend a few to get a feel for how they work, and acclimatise to the atmosphere, before you go to the one selling the property you’re after. You need to know how to make a bid, as hopefully this will stop you buying a property by mistake. Chat to other people while you’re there and learn about their experiences at property auctions.
Stick To Your Limit
Before you go to the auction in question, there are two things you need to know. Firstly, what the property is worth on the open market. Secondly, the maximum you can afford (or are willing) to pay for it.
You can look at other local properties for sale to get an idea of the value, or ask estate agents in the area for their opinion. It’s a common misconception that all property is sold cheaply at auction, as often it’s there because a speedy sale is needed rather than a sale at any price.
Calculate your budget and make sure you do not exceed it, or you could end up spending more money than you bargained on. On the day of the auction, if your bid is successful, you will be expected to pay a 10 percent deposit, with the balance payable within the next 20-30 days. If you cannot complete in that time you lose the 10 percent you have paid, and some auction houses will also make you pay the cost of remarketing the property.
Have Property Solicitors in Dublin Ready
It’s important to have your property solicitors Dublin ready to handle the conveyancing of your auction purchase as quickly as they possibly can. Your property solicitors Dublin would not want to be the cause of you losing your deposit because they were not ready to deal with all the legal matters involved. It’s no use waiting till after the auction to inform them of what you are intending to do.
Property solicitors Dublin will also be able to prepare a pre-auction report that will highlight any potential legal problems with the property. There could be legal issues that need to be remedied before the auction, and they will be able to advise you on the costs involved to do this. They will also check the property will be able to be registered at the Land Registry in your name, and will make sure you understand the contract you will be entering into if your bid is successful.
Most auctions houses will provide a legal pack on request. This will contain things like local authority and environmental searches, title deeds, fixtures and fittings included in the sale, the BER certificate and the sellers details. It’s always advisable to get your property solicitors Dublin to check everything that is included.
Have The Property Surveyed
A survey will cost you money, and you may feel that if you are not successful it will be money wasted. However, you could end up having to spend much more money if you do not have a survey and there turns out to be hidden structural damage, or others things that need putting right for the property to be habitable.
Most auction houses will make some sort of arrangements for surveys to take place, either by leaving keys somewhere local to be collected, or arranging to meet the surveyor at the property. Even if you’re aware of problems with the property and are expecting it to be sold below market value because of them, a surveyors report could highlight things you were unaware of.
Get Quotes For Work
Once you have the surveyor’s report you will know if there are any problems, even if they seem to be minor ones, it’s important to get quotes for the work from builders who are used to dealing with the type of property you are intending to bid for.
Having more than one quote is vital, and remember it’s not always the most expensive that is the best. Chat to them about the problems the surveyor has highlighted, and listen carefully to their solutions for the problems.
Have Your Mortgage Agreed
Mortgages can takes weeks to be agreed, and if you’re not prepared can take you past the date you have to pay the balance of your property purchase. Many lenders will agree your mortgage in principle so you know they are happy with you, and will just need to see the property once the auction is over. This can speed up the process a great deal, and also help you to decide what your spending limits are.
Choosing To Buy Property At An Auction
Buying property at an auction can be simple, stress free and speedy, if you have everything in place before the auction date. You often find properties that are a bit out of the ordinary, and unlike conventional purchasing, you know there is no chance someone will make a higher offer days after your offer has been accepted. You will be bidding in real time and the highest bidder on the day will be the winner.
Auctions also offer various methods of making your bid. You can be there in person, arrange a proxy, such as your property solicitors Dublin, or make your bid by phone or online. Attending the auction in person is still the most popular way of bidding, but as technology offers an increasing number of alternatives, this may change.
If you are looking for property solicitors Dublin, whether you are buying at auction or through an agent, get in touch with Anthony Joyce & Co on 01 454 5000.