- Buying a repossessed home can present problems. The previous owner may have had bad credit, which by mistake could show up on your records as you are moving into the same address. For a small fee it is worth checking to see if this is the case with a credit referencing agency so that any such mistakes can be corrected.
- Make sure any major renovations have planning approval. Many unusual investment opportunities crop up at auctions, such as church or barn conversions. To avoid disappointment it is vital to check the planning status of a property and whether there is planning permission for planned changes. Many properties will already have planning permission, but for those without it is best to check with a planning consultant to see if your plans to create a dream home are likely to be approved.
- Dirty tricks, including dummy bids. Beware of malpractice by both the seller and auctioneer. One practice to watch out for is 'bidding against the wall'. Bidding against the wall is where an auctioneer uses the chaos of a packed auction room to invent a bidder so that the price increases. Another dirty trick is for the seller to use a friend to make a 'dummy bid', to inflate the price.
