1.  Go on the auctioneers' mailing lists.

Most auctioneers maintain a mailing list of potential buyers to whom they send details of forthcoming auctions. Certain firms require a nominal payment to receive details, which in most cases is worth paying. But many firms do provide this service free of charge. Since servicing a mailing list is an expensive operation, auctioneers revise their lists at frequent intervals. It's worth checking how long each auctioneer will keep you on their list. Alternatively, check at least every six months whether your name is still on their list and how long they will continue to send you details.

2.  Narrow down your choice of firms.

You'll often find that auctioneers specialise in certain types of property or certain regions. By telephoning a number of auctioneers and asking if they offer properties of the type you're seeking, you'll be able to narrow down the number of mailing lists you go onto. This way, it's possible to reduce the number of wasted catalogues that come through the letter box.

Where auctioneers don't maintain a mailing list, the only reliable way of finding out the date, location and type of property being offered is to ring them up at frequent intervals.

Here are the questions you should put to an auctioneer:

• Do you have a mailing list?
• Do you charge for names to go on your mailing list?
• How long will you keep me on your list?
• Will you tell me if my name is about to be removed?
• What types of property do you auction?

3.  Subscribe to property auction magazines.

Two major property magazines are published: the Estates Gazette and Property Auction News. Each of the two property magazines has a slightly different approach to the auction world. None of the magazines focus solely on residential or commercial properties or any specific part of the market.

Property Auction News has become the bestselling publication dedicated to property auctions in the UK. Thousands of readers have bought cut-price property after learning about the potential of auctions through its pages; invaluable and highly recommended. The Estates Gazette provides a page every week of commentaries on sales that have taken place.

4.  Comb the auction catalogues.

You'll probably be accustomed to the standard estate agents' particulars. Similar particulars are always produced by auctioneers and will invariably contain, apart from the normal property details, information about the date, time and venue of the auction.  

The auctioneer's catalogue contains the same information as the individual auctioneer’s particulars but it's produced in a bound form, in lot order. In most cases these will be provided by auctioneers where there are more than three or four lots to be offered on one occasion. The lots’ details are still likely to be brief but accurate. They are usually accompanied by relatively comprehensive instructions to buyers on how to proceed at the auction.

It's this kind of comprehensive catalogue that you're likely to receive from auctioneers who maintain a mailing list and who despatch such magazines or booklets one month to three weeks before their sales.

5.  Look for clues to repossessions.

Some banks and building societies are very coy about the public knowing that they have repossessed properties and take considerable steps to avoid it being known that properties included in auctions are the result of repossessions. Other societies and banks are quite open. You can look for the clues.

In the initial advertisements, the auctioneers may disclose that certain properties are being sold as a result of repossession. The advert may contain a general list of the clients for whom they are selling which will then include the names of the societies and the banks. This information may be repeated in the auction catalogue itself, either in a general statement or on the relevant lots. The catalogue may give less specific references with phrases such as ‘On behalf of mortgagees in possession’, ‘By order of ...Building Society’, ‘On the instructions of an LPA Receiver’ or ‘On the instructions of a liquidator’ or similar.

Without these clues there can be more subtle indications. The solicitor acting may have as his address that of the head office of a building society or bank. Even without that direct indication it's possible that the name of the building from which the solicitor operates is an indication of the society for which he works. It may even be possible to link up the solicitor’s telephone number quoted or the one quoted for access to the property.

If all else fails, an outright enquiry at the auctioneer’s office or at the co-agent’s office may tell you if the lot you're considering is as a result of a repossession.

Find out more about picking up a repossessed property bargain.

6.  Inspect the properties that interest you and track what properties fetch at auction.

There can be nothing more valuable to you than forming your own conclusions about the right price from doing your own research. To do this, you'll need to analyse the prices that have been paid for similar properties at previous auctions. Analysing past figures in the light of the present state of the market and the nature and true comparability of the properties can only come with practice. Obtaining the results of past auctions is sometimes not easy. Occasionally, auctioneers publish past results in their next catalogue and if you're on their mailing list, you'll be able to collate these figures.

7.  Read the conditions of sale.

These are the terms on which the successful bidder will buy the property. They regulate not only the bidding, but also any obligations the bidder must fulfil. They give a full and definitive description of the property and prescribe what happens after your bid is successful.

The bidder at auction will usually find up to four conditions to watch out for:

• The general conditions
• The additional general conditions 
• The special conditions 
• Any other conditions under whatever name

These conditions may appear in several guises and in several places. You may find all the relevant conditions applicable to a lot are dealt with in the auction catalogue. Alternatively, you may find only some conditions in the catalogue, normally called ‘General Conditions’.

Where an owner has a number of lots in an auction and he or his solicitor thinks it advisable to have certain conditions relating to all those lots or most of them over and above the general conditions, he can arrange for these to be printed in the catalogue and they will be headed ‘Additional General Conditions’ or something similar.

8.  Appoint a solicitor.

Your solicitor should be someone in whom you have confidence and whom you're sure will make reasonable charges for the service provided. Your solicitor should undoubtedly be someone who has experience in property conveyancing. If you can find one that has extensive experience of auction procedures, this will be a bonus. Finally, you must be sure that he can move quickly since the timescale from when an auction is announced to when it occurs is often only three or four weeks.

As soon as you have decided to make a bid, you should immediately approach your solicitor for advice. Ideally, you should give him a copy of the catalogue and, at this first stage, discuss the conditions being applied to the sale. Your solicitor will check that the conditions don't contain any unusual or surprise clauses that could penalise you. As soon as you have his reassurance that he is happy for you to go and bid, you need him to start researching the lot or lots in which you are interested.

Find the right lawyer for you online.

9.  Decide on your maximum bid.

The easiest way to do this is to obtain a professional valuation of your target property. The auction market is a particular test of a valuer’s skill, since the competition to buy exists in the present and the purchase is immediate. You're asking the valuer to use his experience of a general market and to come to a conclusion following the results of his research of past transactions. Even when applied with maximum skill, this will not necessarily give the accurate answer you're seeking, since he is only endeavouring to put himself into the minds of two or more hypothetical bidders, with all the uncertainties that that creates. Nevertheless, his experience and assessment from past sales must be of invaluable assistance to you in making a final decision as to your maximum bid.

You should choose a Chartered Surveyor. If you can find one in the district of the property who also has experience of auctions, do obtain his assistance. You must expect to pay a non-returnable fee which will vary according to the type of report that you require.

10.  Arrange the finance.

It's important to remember that on the day of the auction you'll be required to make a deposit of 10% of the purchase price or a specified minimum sum. You must ensure that you're able to pay both this deposit and the balance of the purchase price 28 days later.

If you're using a finance broker, bank or building society to provide the funds, you should have the financing agreed, lot by lot, prior to the auction. The finance house will want to be satisfied that the valuation of the property is acceptable to them. 

Now you're ready to start bidding!

Find our more about winning your bid and what to do at auction with Howard's book "Buying Bargains at Property Auctions".

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Article: Seven steps to picking up a repossessed property bargain
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