Once the hammer comes down, the property is yours, meaning you need to have everything lined up beforehand…
How should I prepare?
Firstly, find out what auctions are happening and look at the catalogue of properties that will be auctioned off. Usually, these are published between two weeks a month before the actual auction.
Secondly, you need to treat the purchase like you would a regular one. Arrange viewings, and even take a builder or architect with you if possible, to get an idea how much work the property needs doing to it, and how much it will cost.
You should also compare the properties with ones currently on the market, to judge if it’s worth buying and renovating. A surveyor or valuer can help with this.
You should also consult a conveyancer. A conveyancer will help with all the legalities, and look at the information provided by the auction house to make sure you are not caught out by any conditions of the sale.
Arrange a mortgage beforehand
Once the hammer comes down and the property is yours, you will have to put a 10% deposit down. You will then have a set amount of time, normally 28 days as standard, to pay the rest of the amount off.
If you are using a mortgage to pay this outstanding amount off, then arranging a mortgage and having an agreement in principle could help to speed up the process.
For advice on buying a house at auction, and arranging a mortgage for it, speak to one of our expert advisers who will be able to help you with the next steps.