NEED TO KNOW BUYING LAND AT AUCTION

Every month, our beginner’s guide takes a detailed look at a new aspect of land finding. This issue, it’s our guide to buying at auction. There are a number of challenges to get to grips with when bidding for a property. A lot of these revolve around doing your pre-sale homework – or due diligence, to give it a more business-like spin. Here are five key things to bear in mind:

Check the planning situation Before you bid on a plot, be sure you have a very strong case to gain the planning permission you want to develop it.

Determine your budget Every self build needs good cost planning; otherwise you simply can’t gauge whether you can afford your project or that the total cost for the plot and build won’t exceed ceiling values in the area. Resist the temptation an auction can instil to rush through this process, as doing so could mean you miss factors that might add cost or delay the project.

Get the finance in place Whether you need a self build mortgage or not, you must be able to pay the deposit and buyer’s premium on the day.

Factor in professional costs You should always engage a solicitor to check through the legalities – and you may also need a surveyor, architect and/or planning consultant to assess the project’s viability and help forecast a budget. They’ll all expect a fee for this, of course, and the outlay will be at your risk (you can’t reclaim these payments if you don’t win the bid, for instance).

Don’t get carried away The temptation to keep bidding is strong when you’ve put a lot of time and money into preparation – but remember that you’ve done your sums, and be prepared to walk away once you hit your ceiling price.

For more advice log on to www.self-build.co.uk/auctions