The tough economic climate represents a difficult time for would-be home buyers at the moment. With prices reaching record highs, particularly in the South of England, it can be difficult for first time buyers to get a foot on the property ladder. This fall in the numbers of people buying houses is not indicative of a lack of demand – on the contrary, the housing crisis that has been debated for a few years now is showing no signs of abating.
If you would like to buy, but cannot afford to on the open market, then you might want to consider buying a home at auction. Auctions are a great way to find a home at a good price. However there are a few things to consider before trying to win a house. Good houses will inevitably attract more interest and because of the nature of the homes up for sale, you could find that you will have to undertake extensive renovation works to get it up to living standards.
Before you take the leap and start bidding, you should have a clear idea of what you want, how much you are willing to spend and what you want to achieve with your property – are you looking to purchase a family home, buying to sell or buying to let? You must always take future prospects into consideration before you start to consult auction house catalogues. These catalogues are now widely available online but you can find print versions in your local offices. You should also check your local newspapers and internet listings.
Once you find a house that you are interested in, make sure you visit open days and ask questions about the property to gauge how much work you will have to do to it. If you are still interested, consult your lawyer and have surveys and reports prepared. These surveys will be vital if you are to work out a price that suits your pocket and the property as you will need to factor in any building work to your final costs.
At auction, always have an absolute maximum price in mind and never exceed it. Although it is very easy to get carried away, you have to maintain a cool head – there will be more houses available in a short period of time, and even if you think you have found your perfect property, paying too much will negate your investment and you will find it very difficult to turn over a profit in the future.