A property auction is an excellent route to buying your first home. Auctions are often the fastest and most efficient means of buying properties on the cheap. However, auctions may be a daunting task for some, so here are some tips on how to make a property auction a rewarding experience for you.

 

If you are thinking about climbing up the first rung of the property ladder but don't know where to start, here are my two words of advice for you: property auctions. Property auctions are one of the quickest and most efficient methods for buying properties at knock down prices. And the good news is, thousands of homes and properties across the United Kingdom are sold each year at auctions at prices that are affordable and well below market value.

Don't let the gavel and the stuffy set-up fool you. Property auctions are no longer reserved for the elite. Wise buyers have now figured out the merits of going and indeed, many of them have cashed in at an auction. Homes and properties are often sold at a discount of around 10% to 40% off their market value price. Now, isn't that a fantastic way to secure a bargain!

Convinced? However, keep in mind that going to a property auction requires a little background work especially if it's your first time. While it may be a heady and exhilarating experience for the seasoned investor, most first-timers find the auction experience daunting and terrifying. But don't get intimidated. Before you delve into the world of auctions, keep your eye on the prize and remember that your ultimate goal is to grab a property at a price that is right. However, remember that there are certain legal, technical and financial considerations to keep in mind. That is why it is important to know the basic issues and problems that people encounter when they buy auction deals.

By keeping these quick and easy tips in mind, that first auction might just turn out to be a fun and rewarding experience after all. And when the gavel falls, that property is yours!

Arrive at the auction early and grab the best seats in the room - usually you will want to sit somewhere that allows you to see the other bidders in the room. Familiarize yourself with the auction room. Make sure that you are seated in a location with a clear view to the auctioneer. It is vital to let the auction conductors easily see your paddle being raised.

- Identify yourself. Bring at least two forms of identification with you. This will come in handy if you successfully land a bid that day. Also bring your 10% deposit and be ready with your banking details.

- There might be add-ons. Most of the time, auction houses distribute addendum sheets before the auction begins. Addendums contain the additional properties that are sold that day and some last minute information and amendments. There are always properties that are withdrawn or added on the day of the auction. You are informed of these changes by securing a copy of the addendum sheet.

- Place your bid clearly. Not only is it important to sit or stand in a strategic spot, also make sure that you are able to communicate your bid clearly and succinctly to the auctioneer. Winks and slight head movements are not enough. Most auctioneers do not pick up very subtle gestures. Instead, raise your hand or your paddle distinctly. More importantly, be alert. You do not want to have your dream property pulled out under you just because you were not paying attention.