When bidding for a property at a property auction house, be sure to set a budget beforehand. This will ensure you don’t go overboard and end up paying more than you can afford. You should also have your solicitor and conveyancer with you during the auction. They can help you understand the legalities involved and identify any hidden loopholes or covenants. The auction house may also require you to pay a deposit prior to completing the sale. If possible, arrive early so you have a good view of the auctioneer.
A successful bidder will be required to pay a 10% deposit on the property at the auction, and the balance will need to be paid shortly after. Many auction houses have a guide price that is set deliberately low to generate interest, but it is not the actual sale price. However, if the guide price rises after the auction, it may indicate that the property is receiving lots of interest from other buyers. You should also check out the condition of the property. It may be in need of extensive repairs or be subject to restrictions on alterations.
Before the auction, you should conduct a thorough inspection of the property. If it has liens or has other problems, you may end up stuck with an expensive property. Some auction properties will allow you to do an inspection before the auction, but this is not always possible.