The Homes Under the Hammer presenter believes more of us should consider buying property at auction. But first we need to understand what we’re doing...
“Not enough people buy property at auction and there are some great bargains to be had,” says Martin Roberts, the BBC property expert. “But you’ve got to be really careful. Not all auction properties are bargains. But there are bargains at auctions.”
Here are Martin’s three top tips for buying property at auction...
1. Do your research
“Don’t assume you’ll get a bargain. The only way to really know if you're getting a bargain is to look at what’s out there and see how much similar properties are selling for.
“Then you’ve got to go and visit the property beforehand. You can’t know what a property is like until you've actually seen it. It could be under a flight path. It could have the neighbours from hell. It could have all sorts of issues which you can’t see from an auction catalogue.”
Two-bed terraced house in Silloth, Cumbria is up for auction in August with a guide price of £37,000
2. Read the legal pack
“The auction catalogue is one thing, but that’s just a shop front. The legal pack is the thing which contains all the information you need to know about the property: rights of way, covenants, does it have a lease that’s going to run out in two months’ time? Whether it is actually available for sale!
“You need to read the legal pack or get it to somebody who actually knows what they are talking about.”
3. Sort your finances
“You must go to auction with your finances in place. You cannot go and think: ‘Oh, I’ll buy that and then try and work out the finances.’ If you haven't got the money, or you can’t get the money for sure, don’t bid.
“You haven’t got very much time once the hammer goes down - a maximum of 28 days to sort out the finances. So if you go there without having them in place, you’re setting yourself up for a massive fall.”
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