I am thinking of attending a BidX1 auction to buy an investment property. I have never been to an auction before and I am not sure how they work exactly. I have seen one or two properties that would be suitable and in budget. Do you have any general advices?
Buying a property at auction can be risky business if you do not first complete your due diligence. The majority of properties for sale on BidX1 are sold by Receivers. This in itself is not an issue however the Receiver will have limited knowledge of the property and will offer little or no assurances in relation to planning, structural issues etc. Once you register your interest with BidX1 they will provide access to the legal documents. It is vitally important that you appoint a solicitor to review the title documents before going to auction. Your solicitor will check for liens or charges against the property and highlight any defects on title, issues with planning permission etc. It is also very important to have the property surveyed, a survey will highlight any hidden structural damage. If your bid is accepted you will sign the contract and pay a non-refundable deposit. The Contract for Sale will have strict closing dates so it is important to have a solicitor appointed and funds ready to go. Good luck!