After a much-hyped but ultimately disappointing auction in Kilkenny recently, I have advised clients not to get too excited about the upcoming Real Estate Alliance national auction, which is due to take place at the end of the month. However, with an excess of 70 lots, with reasonable AMVs, it is worth taking a few minutes to look through the property line-up. With a good mix of residential and smaller commercial units (particularly suited for SME’s looking to secure premises for the business, funded by their existing pension). Residential investors could do worse than looking at traditional student accommodation in rural cities and towns.
Do not be tempted just to turn on the day and hope you catch a bargain. It is essential to be aware that if you successfully bid at auction, you are legally bound to buy the property. Therefore, there are certain steps that must be taken before you even consider bidding. First, ensure that you have the finance arranged; secondly, certify that the structure is sound (professionally – mistakes can be costly!) and most importantly, obtain a copy of the contracts and title documentation so that your solicitor can check for any title defects that would affect value, for example, planning permissions, rights of way etc.
First-time bidders may not know that you will sign the contracts immediately and pay a non-refundable 10% deposit, on the day of the auction. A completion date will be specified in the contract. This is the date when you will be required to discharge the balance monies and take possession of the property.
Be prepared, do your research and know your figures. Do not get taken-in by the hype and pre-auction spiel as the property (lot) is being presented, you should have your limits firmly set before setting foot inside the door of the auction room.
If you need support, it is worth remembering that Buyers Broker reps attend auctions nationwide on behalf of clients or they will accompany inexperienced bidders to ensure the most successful outcome on the day.
Best of luck,