Buying a house or flat at an auction can be very cheap and save you lots of money on its retail value. It can also be a nightmare if it goes wrong, with you ending up with a property that is structurally unsound and needs hundreds of thousands of pounds worth of work. You probably won’t have seen the property beforehand, so you are essentially relying on what you are told about it – and who is to say that’s accurate?
If you are thinking about buying a property at auction, consider these tips:
- Use your experience. This kind of purchase is perhaps better left to experienced property renovators who have carried out extensive work on a house previously.
- Make sure you have enough money behind you. Bear in mind that you could lose money on the purchase, especially at first. Make sure you are comfortable with the risk.
- Check the area. Make sure the property can sell for a good price once renovated.