What Happens When You Buy A House At Auction?: In a recent video, I explain exactly how to buy a house at auction. In the video, I guide you through the entire process step by step and show you the advantages and disadvantages of buying a property at auction. I also explain what you need to know about the process and how to prepare psychologically.
Auctions can be an amazing way of making money as a property investor. However, if you don’t know what you are doing, you can lose a lot of money too!
If you want to know exactly what happens when you buy a house at auction, watch the full video until the end. You can find the video at the top of the page or on my YouTube channel. If you are thinking of buying at auction, don’t skip this one!
I find awesome deals at auctions! Many motivated sellers sell their properties this way. Therefore, if you know what you are looking for, you can get below market value deals.
It is also a faster way to buy property. Once the auction is complete, the price is final and the seller can’t back out. However, neither can you as a buyer! That means inexperienced buyers sometimes end up worse off when buying this way.
In the video, I give you a complete guide on how to buy a house at auction. In this article, I explain what happens when you buy a house at auction in 3 easy steps. This will give you an overview of the auction process. Reading this article will help you to know exactly what to expect and allow you to prepare.
I want to get property education into the hands of as many people as possible! A lot of newer property investors want to know exactly what happens when you buy a house at auction, and how the process really works. This information could really help them. Please consider sharing this article on your social media pages, your followers will thank you!
1. What Happens When You Buy A House At Auction?: Before The Auction!
When you find a property you want to buy at auction, it is essential to do a lot of research. If you are the winning bidder, you will have to buy the property. There isn’t a cooling-off period!
Read the legal pack thoroughly, and consult a lawyer. If anything is missing from the legal pack, this is a massive red flag. Pictures are not enough, make sure to attend a viewing!
2. What Happens When You Buy A House At Auction?: Bidding!
When bidding at auction, it is always tempting to over pay. Once you start bidding, you don’t want to lose the property! Set a clear limit in your head and stick to it.
Don’t choose a round number because other people will do that as well. Pick a specific number just slightly higher than you want to spend. Strictly adhere to this limit.
3. What Happens When You Buy A House At Auction?: Paying For The Property!
If you win, you will generally need to pay a 10% deposit immediately. You will then have 28 days to pay the rest and complete. Have your solicitor ready to do this.
You should have your funds ready before the auction, whether that be cash or bridging finance. Do not bid on a property and then try and secure funds afterwards.
If you fail to pay on time, you will lose your deposit. The seller will then need to try and auction the property again. If it sells for less than the amount you agreed to buy it for, the seller can also sue you for the difference!
What Happens When You Buy A House At Auction: Now You Know, Get Property Training!
Now that you know what happens when you buy a house at auction, it’s time to learn the skills to invest profitably! Join me at my next introductory training event!
We have different courses throughout the year, each teaching different things. Here is a sample of what you could learn on one of our popular introductory courses:
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Become a property investor using other people’s money so that you can get started straight away
Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets aren’t expensive, so book your property training day now. If you are ready to take action, I hope to see you very soon! If you can’t make it in person, we also have virtual events too!
