Have you ever considered buying property at auction?

[totallyproperty]

While real estate markets around the world are starting to show signs of recovery, after the 2008 US mortgage debt crisis, there are thousands of repossession properties sold each and every day by banks around the world. Have you ever considered buying property at an auction?

 

[totallyproperty]

Do you have any stories of bidding for properties at auction?

We would like to hear your experiences.

Regards,

Mark

 

[George79]

Buying homes through an auction can be tricky because you can easily be outbid by someone willing to pay over the actual value of the home.

 

[Le Seb]

I've always be tempted though never did in the end.
I have been to an auction before though, and if you are going to bid, you need to do a lot of research on the property BEFORE the auction, and set yourself a maximum price, and then have the discipline not to break your maximum price in the heat of the action.
It's very easy to end up paying more than you wished for.

That said, with a bit of luck you can pick up bargains.

I also watched a TV documentary once about this and the best bargains are when the property advertised is far from the place of the auction, say 100 miles or so. In such scenario, few people would have made the effort of doing the homework, so few would bid, and you can pick p a bargain.

 

[KGeeson]

I used to work for a company that purchased mainly from auction and it was a strategy that worked for them. But the key thing was never to get carried away with the excitement of bidding on the day, and allow your bidding limit to creep up. Clearly work out your numbers before you go and make sure you stick to your limit - no matter what.

 

[Veronica]

The important thing, apart from actually visiting the property is to thoroughly read the information pack which is supplied by the auctioneer. This will let you know if there are legal issues or other issues which you need to know about.
Many people have come unstuck because they failed to read the legal pack.

 

[nmb]

I think too many people get carried away by the property TV shows which seem to glamorise property auctions when in reality it can be very different. The simple fact is you need to know your limits, work within a strategy and more importantly do not pay over the odds. Stay focused on the property or properties you have in mind and do not waiver towards others you have not researched.

 

[Jeff L]

The important thing, apart from actually visiting the property is to thoroughly read the information pack which is supplied by the auctioneer. This will let you know if there are legal issues or other issues which you need to know about.
Many people have come unstuck because they failed to read the legal pack.

Should we do this ourselves or should the legal pack be scrutinised by a solicitor/conveyancer please.

 

[Veronica]

I think as long as you read the legal pack thoroughly you should be OK. However if there are any items on it that you think might be a problem you could seek advice from an expert.