BUYING a house at auction can seem a tempting way to avoid all the usual bureaucratic, complex and time consuming process associated with the property market.  What could be months, can possibly be reduced to minutes while you’re waiting for the hammer to fall.

However, there’s far more involved than showing up, finding yourself a deal and then getting the keys.

You still need to know something about the property market and the legal binding documents which await you after a sale.  So do some research and get yourself ahead of the game.

Before you start, set yourself a budget and stick to it.  Don’t risk stretching yourself beyond your financial range.  Make sure your finances are in order and you have a good credit rating.

Buying at auction has been one of the main driving engines of the buy to let market with many a tale of an old property being snapped up and transformed into a ‘dez rez’ to temp those who see it as a quick way to make a profit.

If that’s your aim, stop and think.  Have you a business plan? IF not, get one drawn up and save yourself much frustration and anguish as things go wrong with you unprepared.

Before you take part in an auction, why not just go to one and see what happens?  You’ll learn a lot and it will help you with your plans and ambitions.

Get in touch with an auction house first and ask to see their catalogue. Most auction houses regularly have sales with catalogue published usually several weeks before.  Subscribing to mailing  lists is also a good idea.

When you get a catalogue or list, examine it thoroughly and digest all the facts and details.

When you’ve found a property or lot that interests you, make an appointment to see it (see the Auction House catalogue for arrangements).

Do some independent research on the property concerned and carry out property or land searches.  Speak to your would be neighbours and check it out with local estate agents.

Make sure the property actually matches the one in the catalogue.  Seeing the lot in reality can be different to seeing a specially prepared promotional photo.

If you’re interested in bidding, donít jump in before going over the catalogue and relevant conditions with the finest of fine tooth combs.  Then donít anything else before getting advice from a solicitors and/or chartered surveyor.

When the day of the auction comes, you will need to have a deposit of at least 10% ready for when you buy.  After signing contracts, the remaining 90% will have to be paid by 28 days later or you could lose your deposit.

If you need to a get a mortgage to help you pay, make sure you see your bank or building society before bidding at an auction.

Always remember that buying at auction will see you taking on a binding commitment with all the same legal implications as buying privately. Auction Houses can usually provide copies of all relevant legal documents.