Like any other house purchase you should make full investigations of the property with a few viewings, knowing what finance you have available and what you can achieve within your calculations including whether you can make a good return on your property investment.

When you see a property that is advertised to go to auction, visit the property to see whether it is one you like, and whether the guide price suits the property’s condition.  Knowing the potential returns you could achieve from this property whether it be that you are looking at doing the property up or just a quick turn around.

After making decisions on whether property is for you, as this is an auction property you need to make sure your finances are in order attending the auction.  If you are a cash buyer you are in a better position but if your purchase relies on finance you should make sure you bank is fully aware that your finance is for an auction property.

Auctions can be a little intimidating so I recommend going for a trial run just so that you can fully appreciate how they work and what happens, if you don’t have the time for this then turn up early and watch the first auctions.  Bidding on a property is binding so be fully aware of what you are taking on, you will usually get 30 days to complete after the date of the auction so having a solicitor in place and making sure he is aware that you have a tight deadline is really important.  Start bidding to your budget, try not to get too carried away as I have seen a lot of people keep going past their budget which is a dangerous game.

If you are the lucky winner then the transaction is similar to a normal house purchase after that other than the tight deadline you are working torwards.

Give auction properties a go they are a good way to find a bargain and are a great property investment.