How to Prepare for Your First Property Auction

Attending your first property auction can feel daunting, but with the right preparation, it can also be an exciting and rewarding experience. Here’s a step-by-step guide to ensure you’re ready to bid with confidence.

Step 1: Research the Auction Catalogue Start by reviewing the auction catalogue, which lists all the properties up for sale. Focus on properties that meet your criteria and budget. Pay close attention to the guide price, location, and property condition. Make a shortlist of potential properties and gather as much information as possible.

Step 2: Arrange Property Viewings Most auction properties are available for viewing before the auction. Use this opportunity to assess the condition and identify any potential issues. Bring a surveyor if necessary, especially for older or unique properties. Viewings also allow you to estimate renovation costs or other expenditures that might be required post-purchase.

Step 3: Review the Legal Pack The legal pack contains essential documents such as the title deed, searches, and any special conditions of sale. Have a solicitor review these documents to avoid surprises later on. Understanding the legal pack will also help you assess whether the property comes with any restrictive covenants or other legal complications.

Step 4: Secure Your Finances Auction purchases require a 10% deposit on the day and the balance within 30 working days. Ensure you have the necessary funds or a pre-approved mortgage/bridging loan in place. Speak to lenders experienced with auction purchases, as timing can be critical.

Step 5: Set a Budget and Stick to It It’s easy to get caught up in the excitement of bidding, but overspending can lead to financial strain. Set a maximum bid and stick to it. Consider all potential costs, including legal fees, stamp duty, and renovation expenses, when setting your budget.

Step 6: Register for the Auction Most auctions require pre-registration. Ensure you’ve submitted all necessary documents and received confirmation of your authorisation to bid.

Preparation is the key to success at your first property auction. By doing your homework, understanding the process, and staying within your budget, you’ll be well-positioned to make a confident purchase. Auctions are fast-paced, but with the right groundwork, they can be an enjoyable and rewarding way to buy property.