Many people head to the auction room to buy a property that needs lots of work. But while this can be a good way to find a project, make sure you don’t get carried away and pay over the odds, as once the hammer comes down, you are committed to the purchase.
A few points to bear in mind at auction:
1) Do not forget that on top of the purchase price you have to pay for the work that needs doing – and the aim is to try and make a profit.
2) Check the legal pack. Make sure there are no absentee freeholders who would make it awkward to resell.
3) Get quotes beforehand so you know what the work will cost.
4) Consider the key selling features for a resale – if the property backs onto a railway line, for example, it will affect how quickly you can sell it on.
5) If you can, pick a property in a good area or near a good school.