Buying investment properties - top tips

Posted on May 8 2013 in Conveyancing, Individuals & families

Buying property at auction can be stressful: the buzz of the auction room means people can make costly, and unnecessary, mistakes. Before the hammer falls on your property dream, take a look at our top tips on surviving property auctions.    

Prepare  

  • Subscribe to the mailing lists of the agents specialising in the types of property you want to buy.
  • Familiarise yourself with the local auction venues and their standard terms of contract. 
  • Where possible have a dry run to get a feel for the process.    

Organise            

  • Carry out simple title checks and searches on your target properties if there is time and have an informal valuation. 
  • Make sure that you have a 10% deposit ready for the day of the auction. 
  • Have buildings insurance cover organised for the property in case your bid is accepted.    

Auction day    

  • Ensure that you take ID documents and that you register with the auctioneer. 
  • Check if the seller will accept an offer on the property before the auction begins. 
  • Concentrate, it can be surprisingly easy to bid on the wrong house!    

And remember  

  • Stick to your financial limit and don’t get carried away. A sensible friend by your side can be invaluable.
  • You are committed once the hammer falls regardless of whether it turns out to be a bargain or a money-pit.
  • Payment is nearly always due 28 days after the auction day.