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Writer's picturePaul Rose

Buy at Auction and Flip For Profits in 2024

Buying property at auction and flipping for profit can be lucrative (if done right!) So, let's take a look at this traditional flipping strategy and give you some tips...



Starting Your Search for the Right Property


So we start off by looking at the buying process... I've broken it down into a process below so hopefully it makes perfect sense!


  1. Research: Start by researching properties that are coming up for auction. You can find listings in auction catalogs, online auction websites, or through local auction houses. Pay attention to the property details, guide prices, and any additional fees.

  2. View Properties: Once you've identified potential properties, arrange viewings to inspect them thoroughly. Look for any structural issues, potential repairs needed, and consider the location's attractiveness to potential buyers.

  3. Set Budget: Determine your maximum bid for each property based on your budget, potential renovation costs, and desired profit margin. Remember to include auction fees, legal fees, and other associated costs.

  4. Legal Pack & Checks: On the auction websites you will see that the legal pack is available for most properties. This must be read and checked for any glaring potential issues. Short leases, structural issues and restrictive covenants could hinder your plans so please be careful. Before bidding, conduct legal checks on the properties you're interested in. This includes verifying the title deeds, checking for any outstanding debts or liens, and ensuring planning permissions are in order.

  5. Finance: Arrange your finances in advance. Most auction houses require a deposit upon winning the bid (typically 10% of the purchase price), with the remaining balance due within a specified timeframe (usually 28 days).

  6. Attend the Auction: On the auction day, arrive early to register and collect any necessary bidding paddles or numbers. Pay attention to the auctioneer's announcements, bidding increments, and any special conditions of sale for each property.

  7. Bidding Strategy: Stick to your predetermined budget and avoid getting caught up in the excitement of bidding. Bid confidently and decisively, but don't exceed your limit.

  8. Winning Bid: If you're the highest bidder and the property meets its reserve price, you'll be required to pay the deposit immediately. Make sure you understand the terms of the sale before signing any contracts.

  9. Completion: After winning the bid, you'll need to complete the purchase within the specified timeframe (usually 28 days). Work closely with your solicitor or conveyancer to handle the legal aspects and transfer of ownership.


Exiting the Deal and Flipping the Property


Refurb costs are much more costly now and than they were a couple of years ago. We have created this guide for the latest average refurb costs below as of February 2024.




  1. Renovation: Once you've acquired the property, begin any necessary renovations or improvements. Focus on cost-effective upgrades that will increase the property's value and appeal to potential buyers. Don't whatever you do become attached or emotional about your choices when refurbing a property. It's about function and numbers not what you would like!

  2. Marketing: Once the renovations are complete, market the property aggressively to attract potential buyers. Put it up with multiple agents don't tie yourself to one agent on a sole agency agreement is our top tip. That way the agents are motivated to get the sale.

  3. Sell at a Profit: When you receive offers from interested buyers, negotiate the best possible price while considering your desired profit margin.

  4. Exit Strategy: If you decide not to sell immediately after renovating it, you can opt for different exit strategies such as renting the property out for passive income, refinancing to pull out equity for further investments, or holding onto the property for future capital appreciation.

  5. Monitor Market Conditions: Keep an eye on market trends and property values to determine the optimal time to sell. Timing is crucial in maximizing your profits.

  6. Profit Calculation: Calculate your total expenses including purchase price, renovation costs, holding costs, finance costs and selling expenses. Deduct this from the final sale price to determine your net profit.

  7. Tax Considerations: Consult with a tax advisor to understand any tax implications of flipping properties, including capital gains tax and income tax on profits.

  8. Time: The time it takes you to refurbish and achieve a sale can eat into your profits. Especially, if you have used bridging finance to purchase the property. Understand the timescales of getting involved in the project and the likely costs as a whole.


Remember, property flipping can be complex and involves financial risks, so it's essential to conduct very thorough research, due diligence, and seek professional advice when needed.


With careful planning and execution, you can successfully buy properties at auction and flip them for a good profit even in 2024 and beyond.


With any project you make money when buying, as well as when you sell!


Buying at auction is where potentially you can bag yourself a real bargain of a property - just be clear on your budget before attending or bidding.




We have opened up our mentor program to new members - we are currently selecting clients we feel are a good fit for our training. To be in with a chance you'll need to apply here: https://form.jotform.com/240273740262349

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