Buying Property at Auction

Buying a house at auction is a great way to purchase an investment property.

Where to go

There are a few auctions that sell properties in Yorkshire and Humberside, they are generally in Hull but can be as far away as Leeds or Nottingham.

Types of Auction Property

Generally, at auction there are a number of refurbishment properties but competition is usually high for these. Investors, homeowners, builders and developers all seek out refurbishment properties at auctions looking for their next project. This demand, with competitive bidding can push the final purchase prices up a bit.

Properties that do not need a lot of repair or that are already tenanted can often be a better buy as competition is lower.

Due Diligence

The real key to picking up a bargain at an auction is to do your research before it begins. Some properties at auction come with problems like structural issues, very poor condition, title issues or even bad neighbours and you do not want to get caught out. Visit the property, with a builder or someone who can advise on the structural soundness of the building. Look for any problems that may be hidden and try to find out why the property has been put into an auction. Always read the legal pack that is provided by the seller and if you have any concerns ask a legal advisor to look it over too.

Cost

It is easy to get carried away at an auction and it is important that you consider the highest price that you are willing to pay once the bidding starts. Take into account the cost of doing a survey, getting the legal pack checked by a solicitor, potential rental yield and the cost of any refurbishment that is needed.

Getting Help

If you would like further help or advice about purchasing a property at auction please call the New Mills Properties office on 01472 360178.