Well, where to start? Clearly many individuals make money through buying and selling property, and yes, some of that will be through auctions. This means taking the time to educate yourself on every aspect of the process, from the legal considerations to the auction and bidding itself. Seeking guidance and advice from others, conveyancers, solicitors, friends etc, can really help you to understand the pitfalls and avoid them.
If you are going to make money, it’s important to understand all the costs involved. And most prospective buyers only ever take into account the price of the property. But the truth is, buying property at auction has other fees to be wary of, including registration fees, auction commissions, property debts and transfer costs, among others. In order to budget correctly, you should factor in every cost involved.
Equally importantly, do not take the ‘guide’ price as the amount needed to agree the sale. The guide price is not a reflection of the final sale price, it is simply a ‘hook’ to generate as much interest as possible on behalf of the seller. In reality be prepared to pay 10%-30% more than the listed price in the catalogue/auction advert just to be safe.
If you stick to your budget, craft a solid game plan and stay aware of the many moving parts of property auctions, there’s no reason you can’t find a great property for a bargain price. It just takes time, patience, research and a little know-how.