Going once, going twice..............

Who in their right mind would think of buying a property at an auction?

I’ll tell you - everyone who has the pleasure of looking after their children on school breaks, anyone who has had a duvet day and anyone who has gone on holiday in this country - that’s who!

And who is to blame? I will tell you that too!

Those two clowns on “Under the Hammer” wittering on about bargains here there and everywhere. I defy anyone who has watched that programme, normally on after those parasites on “Heir Hunters” – don’t get me started! - not to have given the matter some serious consideration. I think that many of us are drawn in by the lure of how easy it is. Buy cheap, renovate and sell on asap for mega bucks.

Don’t get me wrong there is a market for this kind of sale but I would suggest that it should attract those who are hardened investors prepared to take a punt and not a first timer.

There is a reason in this country why a property goes to auction. There is a perception which is crystalised in the show that the auction is the last chance saloon for a property sale. This is not Australia where the auction is the preferred route to sale. A vast majority of properties have already been on the open market and cannot be sold – every estate agent knows that they are likely to get a better price on the open market. So those properties that appear at auction have already spent time on the market without attracting interest. A motivated seller has one final throw of the dice.

Those properties that appear at auction generally fall into the following categories

• Repossessions – bank need to shift the property quickly

• Executries – owner died and the place is a homage to the 1970s with the beneficiaries being too tight to want to spend a couple of grand doing the place up

• Dead Ducks – properties that have a problem with the title

• Lame Ducks – properties where there are problems with the seller

• Donald Ducks – you would have to be quackers to think there is a profit in that

• Peking Ducks – the property is in such poor repair that no one would want to peek in and have a look – sorry!

Don’t get me wrong there are successes. But for all those success stories, I have come across some real disasters. However, for those of you who want to beat the gavel, here are my top five tips:-

• Due diligence before the auction – but a word of warning this may not even be sufficient – see 5 below.

• Don’t get carried away at the auction – stick to your budget and remember the buyer's premium – the auctioneer is not doing this for the good of his health

• Watch out for the seller’s plant. You may be bidding against yourself.

• If you are not paying cash then make sure that you have your mortgage nailed down. The seller may want his money 14 days after the auction.

• Once the gavel falls and you have signed the contract there is no way out and don’t expect the contract to favour the buyer – an auction contract is one of the most lopsided contracts that I have ever come across.

As ever I would be delighted to discuss any aspect of the buying and selling process with you so please do not hesitate to get in touch.