Buying a property at auction.
Scary? A little. Do-able? Definitely!
Andy Thompson, Auction Consultant, Edward Mellor.
You’ve all seen “Homes Under the Hammer” and heard the stories of ordinary folk dipping their toe into the world of “buy-to-let” and property development, as well as those seemingly very brave people buying a property at auction with a view to making it their next home. Perhaps you’ve wondered whether it’s something you could do yourself at some stage?
Then again, maybe you dismissed the idea out of hand, thinking that the whole process is just too risky, too scary and only the domain of seasoned property experts. And anyway, you probably need to be a cash buyer to go down the auction route, right? Wrong. But more about that later.
Certainly, there are lots of things you need to be aware of when buying at auction; the considerations of what to buy and where; the pit-falls that need to be avoided; and the due diligence processes that are crucial before the fun bit (the bidding!) begins. The good news is that YOU don’t need to know all these things for yourself, or know how to go about them before deciding to buy at auction. That’s my job!
As an Auction Consultant, a role unique to Edward Mellor, I’m here to hold your hand every step of the way. From deciding where to buy and understanding your reasons for buying, to exploring the various options available, together, we can find the right buying model for you. From there, I can guide you through the process of raising finance and the all- important due diligence procedures necessary to make your investment a success. Then, on the big day, I can give you all the practical and moral support you need for the actual auction and bidding process. And after the auction is done, and the property is yours, I’m there to support you until you pick up the keys and beyond.
I’m currently working with a young couple who have never owned a property before and are in the process of buying their very first home…..at auction. After struggling to find the right property through the usual estate agency and online routes, they spotted a property for sale in our latest auction catalogue. We arranged to meet up on the 20th October for an initial chat, and since then, in a matter of days, we’ve viewed the property, checked over the legal requirements, sorted their mortgage and negotiated a pre-auction deal! We should be exchanging contracts on Monday 26th October – less than a week later!
The benefits of buying a property at auction are the speed and certainty of your purchase. Once the hammer comes down, you can’t be gazumped. The property is yours. And, as a general rule, these properties are cheaper than they are on the open market. So, whether you are looking to buy-to-let, buy to sell-on or move in yourself, buying at auction is a great way to make your money go further.
When I meet clients who are considering buying at auction, there are a number of areas on my check-list that I need to know in order to give the right advice and decide on the best property investment options.
Then, I act as a kind of “personal shopper” for my clients, finding the right property for them. Budget, risk management, end use, timescales and long term plans are all features to be considered. I encourage them to talk about their aspirations and their lifestyle and to think in terms of desired results versus the time, effort and risk involved to achieve it.
There’s a lot to think about and finding the right buying model and strategy is crucial to making a sound investment decision. Don’t worry – I can take you through all the options, all the possibilities, all the probabilities and all the outcomes to find the model that leaves you feeling in control, confident and satisfied with your property investment decision.
I help my clients to explore options they hadn’t thought of and sometimes I’ll have to reign them in from straying off down a route they might regret.
Once we have identified a property, I make sure no stone is left unturned in the due diligence process, so, come the day of the auction, you’ll know exactly what you’re buying, how much you’re going to bid up to and what your end plan is.
It’s my job to make the seemingly scary, out of reach option of auction easier, more accessible and eminently do-able! And if you’d like to talk about it on a one to one basis, please get in touch.
Maybe you just want an initial chat as a fact-finding mission to decide whether buying at auction is something you might consider in the future? That’s fine by me – I love the property auction world and am happy to talk about it at any opportunity!