Preparation for the big day

Buying a house can be a long, tedious, drawn-out process filled with stress, uncertainty and general unpleasantness. The attraction of buying a house via an auction is that it is none of these things and is in fact quite the opposite; the buying process is quick and exciting, it takes minutes not months for a deal to be done.

Buying a house from an auction may be a speedy, exhilarating process but it is by no means the easy way out, nor is it a case of just turning up on the day and having a bid at whatever takes your fancy. Rigorous preparation for an auction is of paramount importance if you do not want to end up disappointed with your purchase.

The properties that are going to be auctioned are displayed in catalogues and can be picked up from the auction house a few weeks before the auction date. Picking up one of these catalogues is essential if you are looking to buy a property. It is often possible to subscribe to the catalogues; this is a good idea if you are in no rush to sell as you can get a real feel for the market and the process over a period of time. It is also a very good idea to go to an auction beforehand to test the water before you plunge in at the deep end with your wallet in hand.

Looking through the catalogue at length is a good start but it is by no means adequate preparation for buying something as important and as expensive as a house. Once you have carefully identified the properties that interest you, arrange some viewings to check out the accuracy of the catalogue details. This will also allow you to check for any hidden negative extras not mentioned in the brief and get a real feel for the property that only experiencing the place first hand will give you.

If the properties that interest you are in areas with which you are not entirely familiar it would be somewhat foolish not to do some research into the location. Estate agents can be good sources of information when you catch them at the right time as can neighbours of the property and the locals in general.

The auction process may well be exciting, but there is no way around the boring paperwork that must be read and understood. You must read up on all the conditions in the catalogue and get legal or professional advice from solicitors and, if appropriate, a chartered surveyor. In most cases, auction offices have copies of legal documentation provided by the seller's solicitors which can be sent to you.

As with any property purchase it is extremely important that you understand the financial implications of what you are doing. You must sort out your finances to ensure that you can be in a position to pay the 10% deposit on the day of the auction and the signing of the contracts; you must also ensure you are able to access the other 90% within 28 days.

It is advisable and useful to plan your mortgage assistance, if needed, in advance. Agree mortgage terms in principal before buying, as it is vital that you fully understand the financial situation. This is because you may lose your 10% deposit if you do not complete within the allotted time slot, usually 20 working days.

An extremely important part of your preparation for an auction is to set a maximum bid in advance and be strict about it. If you fear that you may get caught up in the moment, and your heart will get in the way of your head, then you should seriously consider entrusting somebody else to bid on your behalf.