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Set Your Highest Bid

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Budgeting is important when bidding for a property at an auction. You should plan your finance properly and estimate the highest you are able to pay for the property in question. When estimating your budget you should also include the total costs of repairs, decorating, legal and surveying fees, removals, mortgage and any other expenses you may incur on the property. Based on all this information you can easily decide what is the highest you should bid at the auction.

You should also take into account any hidden extras in terms f costs such the standard 1.5 per cent buyers premium that is likely to be added to the total selling price of the property. Similarly you should also account for stamp duty that you will have to pay for the property purchase.

Pre-sale price estimates are often below the final sales price in order to make the property attractive for buyers at an auction. They can fluctuate throughout the pre-sale period so keep in touch with the agent for regular updates. The guide price – usually set on auction day – is normally within 15 per cent of the reserve price, which is the minimum price the owner will accept. Once the reserve has been met the vendor is legally obliged to sell the property to the highest bidder.

Auctioneers are trained to increase the price of the property slowly but consistently at auctions. Bids tend to go up in £5,000 jumps, then £1,000 and £500. Auctioneers are professional ad will try to get the maximum bid for each property being sold at the auction even if the guide o reserve price may have been reached already. You should be careful at bidding at auctions because you are legally obliged to purchase the property if your bid is successful. You will be asked to pay a sum immediately using a draft or check.