The positives are that you can complete your purchase quickly, usually within a month of agreeing to buy at auction and there’s always the possibility that the purchase price will be less than you expect!
The downside could be that you end up with a property that has problems and could be difficult to sell on the open market or to a mortgage if you need to raise finance.
If you are considering bidding at auction our top tips would be to:
- monitor auctions in advance so you understand the process
- get a qualified solicitor to check through the auction pack prior to the auction so you’re not caught out
- stick to your budget
- have your solicitor and finance prepared and ready to go in advance of the auction
Once you have legally committed to buying at auction, the process usually completes within a month otherwise you run the risk of incurring financial penalties and losing the 10% deposit you paid at an auction to secure the property.