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Save money by buying from property auctions

Every year thousands of British people save themselves a huge amount of money by purchasing homes via property auctions rather than relying on the traditional market. While property auctions aren't for everyone, it's a good idea to make yourself familiar with what exactly they can offer you, and how you can use them to your advantage.

How to get started

The key to a successful property auction is ensuring that you are properly prepared for what lies ahead. There are a number of things that you need to keep in mind to ensure that everything goes as smoothly as you would like it to.

The first thing we recommend is getting out there and experiencing a property auction first hand. Don't worry about buying anything, simply go to get a good feel of how they work. For complete newcomers, they can be quite intimidating given the speed and velocity of some of the auctions. It can be very easy for those with little or no experience to get flustered, and ultimately make mistakes that can prove to be costly.

Once you have a little experience of what you can expect, we recommend you do your homework before you even consider getting involved in the bidding for a property.

What to look out for

The most important thing you need to do if you intend on getting involved in a property auction is to get a copy of the auction catalogue. You can do this by getting in touch with the company running the auction. In the catalogue you'll find all the information about the properties that are set to go under the hammer, so you'll know in advance exactly what houses or properties you are interested in.

You'll need to make sure that you have provisions in place to pay the ten per cent deposit fee required when the auction ends to make your bid official. This means that a lot of forward planning will be necessary. It's also worth noting that the vast majority of property auctions require you to have paid in full within 28 days of the auction's end, so make sure you can afford it!

Other important tips

There are a few more things to keep in mind when buying at property auctions. The most important of which is to be absolutely certain that you don't exceed your planned budget. It is very easy to get caught up in the moment, but the last thing you want to do is put yourself in a financial hole because you got carried away.

Always remember that a bid made at a property auction is legally binding! Never make a bid unless you have immediate access to the finances necessary to pay for your purchase. It is possible to agree a mortgage with your bank in advance, without making anything concrete, pending the successful outcome of your bid; and doing so will protect you from any nasty surprises down the line, so it's highly recommended.

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