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Top Tips for Buying At An Online Auction

17/10/2019

Online auction could be the right route for you to buy a new property, whether you are a property investor or looking for a one off purchase there is plenty of information available to ensure you are making the right decision. 


With the transparency of online auctions, you can be sure that you are paying an acceptable price by viewing what other people are bidding. The process is very straightforward and you can have your new property signed and sealed within 21 days.  

We’ve provided our top tips and important things to consider before buying at an online auction. 

Research the property before bidding 

Ensure you carry out any due diligence you require in full before you think about bidding on the property. It is certainly better to find out about any issues beforehand, rather than after your bid has been accepted and you might discover there are issues you weren't previously aware of. In some cases, this can be things such as poor condition, missing information, or problematic tenants. The majority of online auction properties have no such issues and many buyers simply prefer the certainty and simplicity of the process. However, don’t leave these things to chance and make sure you you’re aren’t going to get any unwanted surprises.  

Ensure you’re paying the right price 
Carrying out research on the market will give you a strong idea as to what similar properties are selling for, this should give you a good indication how much you should be paying and if a property seems like a good investment. Online auctions also give you the luxury of seeing what other people are bidding while the action is taking place so make sure you’re keeping an eye on what is happening at all times. You might find a particular auction where bids are lower than you predicted, so make sure you are ready when the opportunity comes. 

Don’t leave your bid until the final seconds 
Unlike eBay and other bidding platforms, we won’t allow you to make a last second bid without another bidder having the chance to respond. If you bid within the last few seconds it will initiate a 60 second extension, this ensures that everyone has an equal opportunity to respond. If you leave your bid to the final few seconds you also run the risk of it not being received until after the closing time, meaning it won’t be accepted. There’s no problem in seeing how the auction is panning out and waiting for the right moment to submit your bid, but you won’t gain any real advantage in leaving it until the final seconds. 

Check what payment method is required 
It is often presumed that you can only buy a property at an online auction if you are a cash buyer, however many properties are suitable for a traditional mortgage. There are also specialist lenders who can provide you with a quick finance solution while you are looking for something more long term. If you're relying on finance to complete your purchase you need sufficient funds ready on the day to pay your deposit and there may be other additional costs you incur that a mortgage may not cover, so make sure are aware of these before you submitting your making bids. 

If you need anymore information about buying a property at online auction you can read more about the process here.

Please don’t hesitate to get in touch if you need any help and you can also read our blog about selling properties at online auction here.

 
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