Are you trying to purchase an apartment for a cheap cost or to buy a property that is profitable? It is recommended to consider auctions of property when you're looking to invest in lucrative properties or buying a new home at a discount.

Sometimes, the properties sold at auction are owned in the aftermath of repossessions or former housing or council-owned homes have been vacant for a length of time.

Each case has seen the property listed for auction to sell quickly. This can result in some incredible deals available on the market.

Finding an auction

Auctions are more targeted at property professionals than the general public. Therefore, the public's their awareness and exposure is very limited.

A good place to start is looking through the telephone directory or yellow pages, or search on Google or Yahoo.

Another tip is to keep an eye for For Sale signs at your residences. If the sign says 'for sale by auction' contact the number listed. You can either reach an estate agent on behalf the auction house, or directly to the auction house.

Ask an estate agent for the contact information of the auction house, if they can connect with them. It's possible for the estate agent not to provide you with this information, however it is worth trying.

When you're able reach out to the auction house, you can ask to be put on their mailing list. Though there may be a fee for this, you will begin to be informed of the properties that are due to be sold.

Before you place your bid

After you've identified the property you wish to purchase, it is the time to plan financing. This requires contacting the mortgage lender. It is important to do so before the auction.

Once you have won an auction, the law makes you legally responsible to purchase the property. You must be able and willing to pay within a specified period of time.

A basic appraisal will be requested by the mortgage company. However it is advised to do a full survey since the property may be sold due to structural issues that an initial survey might not pick up.

You might want to attend an auction before bidding on the property you want to purchase.

Win your bid

Set yourself a price limit real estate market however, do not be enticed to bid over the limit. After an appraisal will provide you with an estimate of the market value. You shouldn't be able to overbid what you agreed upon with your mortgage lender.

If your bid is accepted, you are legally required to purchase the property. Additionally you'll have to put down 10 percent of the property's selling price. You'll need to make a formal contract, which you'll have read prior to the auction. The seller is legally obliged to close the auction on the day.

You will then have to pay the remaining selling price within a specified period, such as 28 days.

Congratulations, you have just picked up an auction deal.