Top Tips for Finding Hidden Gems at Property Auctions

Property auctions are a goldmine for smart property buyers. Whether you want to flip houses, grow your rental portfolio, or find your perfect home, auctions offer great chances to grab a deal. But winning at auctions isn’t just about being lucky, it’s about planning, preparing, and knowing what to look for. Here are some simple tips to help you find hidden gems at property auctions.

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1. Research, Research, Research

The key to finding a hidden gem is thorough research. Property auctions often list unique opportunities, but not every property is a great deal. Review auction catalogues well in advance, visit auction house websites, and explore the area where the property is located. Use tools like Rightmove, Zoopla, and local council websites to assess market values and planning permissions.

2. View the Property in Person

Never bid on a property you haven’t seen. Photographs in auction catalogues can be misleading. Visiting the property allows you to check its condition, identify potential repairs, and assess its location. Pay attention to details like structural issues, local amenities, and proximity to transport links.

3. Understand the Auction Process

Each property auction house has its own rules and procedures. Attend a few auctions to observe how they work before participating. Understand key terms like “guide price” and “reserve price,” and always read the legal pack associated with the property.

4. Set a Budget and Stick to It

It’s easy to get carried away in the heat of bidding wars. Determine your maximum bid beforehand, factoring in repair costs, stamp duty, and auction fees. A disciplined approach ensures you don’t overpay for a property, no matter how enticing it seems.

5. Look for Properties with Potential

Hidden gems often come in the form of properties that need some TLC. Don’t be afraid of properties that require renovation; these can often deliver the best returns. However, ensure you’ve accounted for renovation costs in your budget.

6. Build Relationships with Auctioneers

Auctioneers are a valuable source of information. By building a relationship with them, you might gain early access to auction catalogues or insight into upcoming properties. Networking at auctions can also help you connect with other property investors.

7. Have Your Finances in Order

At property auctions, the winning bidder is typically required to pay a deposit on the day and the balance within 28 days. Ensure you have funds readily available, whether through cash, bridging loans, or mortgage agreements in principle.

8. Don’t Overlook Unusual Properties

Unusual or unconventional properties, such as former schools, pubs, or churches, can often be found at auctions. While they may not appeal to all buyers, these properties can be converted into stunning residential or commercial spaces, offering unique opportunities for creative investors.

Property auctions are an exciting way to discover hidden gems and unlock unique opportunities. With the right preparation, research, and financial strategy, you can turn these properties into profitable investments. Remember, the key to success is to stay informed, stick to your budget, and always approach each auction with a clear plan.