Tips to Make Your Home Purchase at an Auction Successful
Some people are intimidated by the prospect of competing for a home at an auction and they leave such properties to be bought by property dealers. But this article discusses how you can be successful at buying a home at a public auction.
Hire a Conveyance Attorney in Advance
Auctions are fast-paced events, so it is important that you participate in one when you are fully prepared. The necessary preparation includes getting a conveyance attorney early. He or she will go through any information pack provided about the property you are interested in. He or she will then give you professional advice so that you do not buy a property that has unfavorable conditions attached to it. For instance, the attorney may advise you against submitting a bid for a given home if the buyer of that home will be obliged to re-apply to the municipal authorities in order to get approval for an extension that was made illegally. This advice can save you from the inconvenience of incurring hefty fines for unauthorised extensions to your property. The attorney will also be ready to draft any needed papers so that you complete the purchase within the time limit set by the auctioneer.
Secure Financing in Advance
Winning bidders have a very limited timeframe within which to make full payment for a home. For instance, you may have less than a month to pay up. That time is not enough for you to start contacting prospective financing institutions. That is why you should contact your lenders so that they undertake to finance your purchase once you win the bid. Note that a bank’s promise to fund your purchase may still require procedures such as inspection of the property by the bank to take place. Ensure that these procedures are conducted quickly since there is a clock ticking to the deadline for paying up.
Get Insurance Quickly
The property becomes your responsibility as soon as the hammer falls on your winning bid. That means that you can be held liable for any risks or damage that takes place on your property after that. For instance, a tree on your property may break and damage a nearby home. Such eventualities call for a valid property insurance policy so that legal fees and damages do not ruin you financially.
It is better to first talk to your real estate agent and a conveyance lawyer, such as those at Rae & Partners, before you participate in your first home auction. These professionals will give you expert tips that will save you from making costly mistakes during the emotionally heated auction.