Pro Tips for Buying Investment Property at Auction
Buying any kind of property at auction can be a daunting experience. Exciting certainly, but nonetheless a frantic process fraught with potential pitfalls.
On the plus side, get to know the process a little better ahead of time and you stand to enjoy a much smoother transaction.
So from the experts here at BridgingLoans.co.uk, here’s a quick rundown of a few essential tips for any buyer looking to pick up a property at auction:
- Carry Out Plenty of Research
First and foremost, you’ll need to invest the necessary time and effort in the research phase. Make sure you check out the specifics of not only the property, but also the area in which it is situated. An important question to ask yourself is whether you’d still be interested in the property, if it wasn’t available at a discount price. Question your motivation for buying the property heavily.
- Organise a Full Inspection
Even if you’ve hired something to take a look at things on your behalf, it’s still important to check out the property personally. Ideally, with an expert by your side to point out the kinds of things you might otherwise have missed. Don’t run the risk of encountering any nasty surprises at a later date.
- Study the Legal Pack
When a property is sold at auction, it’s usually accompanied by a legal pack. That being, all the legal admin and general paperwork surrounding both the property and the sale. If you yourself cannot make much sense of its complexities, you might want to have your lawyer inspect its details on your behalf.
- Sort Your Funding Ahead of Time
You need to ensure that if your bid is accepted, you have the required funds standing by and ready to hand over. If not, you risk losing the sale while you wait to get your hands on the money you need. Contact the team at BridgingLoans.co.uk at the earliest possible stage and we’ll let you know if you qualify and how the process works through our online bridging loan calculator.
- Consider Other Funding Options
Of course, bridging loans are not the only funding solutions available. Depending on your current circumstances, the nature of the property and its intended purpose, there are countless other secured funding avenues to explore. Again, contact our customer support team and we’ll walk you through the available options.
- Hire Help Strategically
In terms of both your legal advisor and financial service provider, it pays to be particular. Carry out plenty of research and hire the very best help you can lay your hands on. Don’t make the mistake of recruiting the first random name you come across that’s within your budget.
- Set a Strict Budget
Last but not least, don’t underestimate how easy it is to get caught up in the moment. Rather than letting your emotions on the day get the best of you, establish the maximum you can afford to spend and don’t spend a penny more. Don’t get into a bidding war that’s beyond your means, simply for the sake of it.
For more information on bridging loans or any aspect of purchasing a property at auction, contact the team at BridgingLoans.co.uk today.