Here is a simple guide for reviewing an auction pack when purchasing a property at an auction:
Read the legal pack: The legal pack will contain important information about the property, such as title deeds, searches, leases, and any restrictions or covenants affecting the property. You should read through the legal pack carefully to understand any issues that may affect your purchase.
Check for any additional costs: In addition to the purchase price, there may be additional costs associated with the purchase of the property, such as auction fees, VAT, and stamp duty. You should check the auction pack for details of any additional costs so that you can budget accordingly.
Check the condition of the property: Check online to look at its location and the surrounding area. Always visit the property and if you can’t, send someone you can trust who has the relevant experience to identify potential issues. You should review these carefully to get an idea of the condition of the property and any repairs or renovations that may be required.
Check the auction terms and conditions: The auction pack will contain the terms and conditions of the auction, including the deposit required, the completion date, and any special conditions. You should review these carefully to understand your obligations as a buyer and to ensure that you are comfortable with the terms of the auction.
Register with the auction house to ensure that you are updated with any changes in documents that may be uploaded. It’s surprising how many important documents go online on the day of the auction!
Try and find out why it is in the auction. It is usually one of two things. Firstly certainty of funds such as a repossession or probate or secondly the seller is trying to hide something.
Seek legal advice: Purchasing a property at an auction can be complex, and it is important to seek legal advice before making a bid. A solicitor who specialises in conveyancing for auction properties can help you understand the process and review the auction pack to ensure that there are no issues that may affect your purchase.
By following these steps and seeking professional legal advice, you can ensure that you are fully prepared and informed when purchasing a property at auction.
If you’re considering purchasing a property at auction, it’s a good idea to speak with a bridging finance broker before you bid. They have the expertise and knowledge to help you navigate the auction process and can guide you in arranging finance on the purchase and exit if needed.
A good broker understands which lenders to approach and which ones to avoid, and can help you avoid the pitfalls of buying at auction.
Contact us today as we specialise in bridging finance and can help you achieve your auction property goals.