Observe
You may have the money but don’t go bid crazy, attend a few auctions just as a spectator and get a feel for it. This way you won’t be so apprehensive and will have a clear mind when bidding with money. Plus it takes real skill to be able to follow bids with auctioneers speaking so fast.
Do Your Research
Do some research online and find out when auctions are held in your local area. Ideally you want to find some that are far in advance as this will give you some time to view a property and research the area. Alternatively you can get hold of the auction catalogue as soon as it is printed - this is usually about a month before the auction.
Viewings
When viewing a property make sure to have a look at the local area and speak to neighbours and the estate agents. A place may look nice but any background information may be able to help your decision. Ask the agent about the average price of a home in the area and if anything similar has been sold recently. This will give you an idea of the spending limit you should set.
Surveys
If you are interested in buying a property then make sure to have a survey done before the auction as there may be hidden structural issues. A full survey can be a little pricey but it is better to find out about these problems before than after. It’s always better to know what you are getting yourself into.
A survey will be able to tell you if the property is stable and if there are any structural issues such as damp and subsidence. Any pricey repairs should be filtered into your bid.
On the day
On the morning of the auction get to the venue early and make sure there hasn’t been any last minute changes. An addendum or sheet listing of changes will let you know of any differences to the auction catalogue.
Once you’ve read this set yourself a price limit that you will not exceed. It’s easy to get carried away with the excitement and competition so make sure to stick to your limit. Also make sure you have the funds upfront as if you win a bid then you are legally obliged to pay. A winning bid is the same as signing a contract.
Do you feel a little more prepared now? Pick up your number paddle and get bidding!
Image Credit: Daniel Case at the English language Wikipedia or GFDL or CC-BY-SA-3.0 via Wikimedia Commons
