What are the risks of buying at auction?

What are the risks of buying at auction?

David Sandeman (Managing Director) gives expert video advice on: Why should I buy at auction?; How do I find a bargain at auction?; Can I view a property before the auction? and more...

When buying a property at auction, the risks involved are similar to that of buying through an estate agent. It's important to make sure that you've done all your preparatory work, such as legal searches, checking the title, and surveying the property to make sure the property doesn't have any defects you're not aware of. You have to remember that when the hammer falls on your bid, you've bought the property, and you cannot go to the auctioneer or the vendor after and say, "Oh, I didn't realize it had a big crack in the back wall." Therefore at auction, you buy the property as it is, without any recourse or guarantees.