In a world of increasing home buyer protections and mortgage disclosures, property auctions may seem like an appealing alternative for those seeking an investment opportunity. However, there are many things to consider before making a bid at an auction.
First time buyers should have a pre-auction valuation carried out to find out how much a property is worth. This will also help in establishing what your maximum bid is. It’s also worth getting a ‘mortgage in principle’ sorted so you know what you can afford to spend. This way you can avoid getting carried away in the moment and overspending. When you need Gloucester Conveyancing, go to a site such as montpellier.legal/conveyancing-solicitor/gloucester-conveyancing/
Buying a property at auction is a fast-paced process. You’ll need to conduct all your due diligence before the day of the auction, attend with cash and often register with the auctioneer to receive a bidding number.
Auction properties are often sold as-is and don’t come with the same consumer protections of a typical sale. For example, you may not be able to get a home inspection before closing and problems hidden behind walls or under floors might only become apparent once you take possession.
Also, auction contracts typically don’t allow financing contingencies. So, if your financing falls through the seller can keep your deposit and sue you for breach of contract. Finally, don’t be intimidated by the images in movies and television of people fiercely raising their bidding cards and shooting nasty looks at each other as prices soar until a heavy gavel is slammed awarding the winner.