Sourcing Your First Buy To Let Property - Auctions

So you've tried the portals but come to no avail, and are considering the auctions. To be honest with you, although I have attended many auctions, and on occasion made a few bids, I have NEVER bought a property from an auction. There is no specific reason behind this, I guess the right property has never presented itself.

One thing I will say about auction property is that there is generally always a reason it's in an auction. The likelihood is that the property in question hasn't sold on the open market, and the auction was a last resort. But, you need to question why the property never sold on the open market in the first place.

For me, I like to fully investigate any property purchase that I make, and you are given plenty of time prior to auction to do this due-diligence yourself. You can look on Rightmove and Zoopla, and you also have land registry information available to you.

Another idea is to speak with local agents to firstly find out if they know anything about the street and area, and also if they know anything about the property in question.

If you get the chance to view the property prior to auction, I usually always take someone who has a knowledge of building structures behind them. I have friends in the industry, but if you don't you could always ask someone local and offer an incentive.

Auction Day - What To Expect. 

If you decide to go to a property auction, the chances are you have first seen the property you are interested in, in Rightmove or Zoopla. You will have noticed that the property has a 'guide' price in the portals and doesn't have a fixed price.

This 'guide' price is often very much below the actual purchase price and even the reserve price. So please be aware of this when it comes to bidding. Auction companies will put the properties on the portals at much lower guide prices in order to attract attention. These prices are usually up to £30,000 below the actual asking price.

You also need to be aware of the auction rules, as some auction houses will require you to pay a buyers premium. This is a fee from the auction house for purchasing the property, and is generally in the range of £5,000.