How To Prepare For A Property Auction
Most recently I attended a Commercial Development Site auction in Cardiff for a housing block of flats advertised for £1 and I want to share my experience with you.
What I have always known from going to these type of auctions over the years, is that you should always be prepared. I always make sure that I travel with a pair of ‘wellies’ and a ‘coat’. It can be a nice summers day when you leave for the auction and turn out to be monsoon weather when you arrive.
A quick stop on my way to the auction to refuel presented me the time to carry out my due diligence on the property. The trick here is to find out as much information as possible about the property and its location.
I used google street view to look around, up and down the street of where the property is located. This is good practice to have an insight to the area.
Next I carried out a quick search on Zoopla to evaluate how much properties in that area were selling for. Unfortunately I only came across one property which had been on the market for 3 months and this didn’t quite give me the answers I was looking for.
Always confirm what the auction ad says by carrying out thorough research
Nevertheless, as we approached Cardiff I was stuck behind a ‘Hay Trailer’ and was forced to drive at 5 mph. This gave me the opportunity to take in the breathtaking views and serene surroundings. The perfect place for nature walks and outdoor activities.
As part of my research into the auction property, I make sure that I ‘walk the grounds’ of the site and thoroughly assess the kind of area the property is located on. This will help me to establish to what standard of development I should undertake if I was to purchase the property.
So, two things to consider here are:
1 – Develop the property for profit through rentals or
2 – Hand it over to a housing organisation or a charity.
My first consideration, the property has to have minimal work to be done internally, more of cosmetic work like striping the carpets for new ones, new lick of paint on the walls and a deep clean.
For my second consideration, if I was to hand over the property to a housing association, I would want to get guarantees that I will get the property back in the same condition as I gave the association.
Once at the site, I make it a point that I go through every room with a fine tooth comb while also assessing the amount most likely to be spent on repairs. I specifically look for things like damp, plumbing, electrics as these are more costly to repair depending on the level of damage.
Finally, I make sure that I ask a lot of questions from the auctioneers and even people in the area as this will help me make an informed decision on whether to purchase the property or not. The video below documents the first part of this auction experience