Property Traders – What to look out for when viewing auction property

As a property trader your ultimate goal is to add value and sell for a profit. This is where the old saying ‘buy low, sell high’ originates from.

Welcome to Connect UK’s Auction Academy – Here to answer all your property auction questions.

If you’re looking to flip a property, then you are a property trader, not an investor. So, what do you need to look out for when searching for the perfect ‘flip’?


Have you heard the saying buy the worst house in the best street? Every property has a ceiling price. A ceiling price is the top price a house would sell for, in the area. We know this price by looking at comparable properties sold in the area.

Level of work needed

How much value are you looking to add?

Level 1 – Interior Redecoration. This level would include some or all of the following:
Clearing the property, Deep cleaning, Repainting, New flooring

Level 2 – Room Refits. This level would include having to refit a new kitchen and/or bathroom as well as some or all of the points in level one.

Level 3 – This is where we can really maximise the property’s value. Here we would add an extension or by converting the loft. These ideas would increase the interior space of the property thus adding value.

Expert advice and assistance available to you

Have a clear budget in your head and be sure to set aside a budget for unforeseen circumstances or “miscellaneous.”

What is your timeframe? Remember when the gavel falls, you are the new legal owner and the property is at your insurable risk.

Are you doing any of the work yourself? Do you have family or friends that can help with certain aspects? How much of the project will be completed by getting the contractors in? Do you have contact with any reputable contractors already?

These are all points that you should consider when viewing a property as ALL of these key thoughts will help you evaluate if a property is profitable.

Once the work is completed, be sure to get numerous valuations and weigh up your selling options.

The key point to remember is that you are in control at all times. Do your due diligence and you will be able to maximise your profit margins.

Check out our other videos on what happens if I’m the highest bidder and what makes a property un-mortgageable?

And remember to subscribe to our channel to become a property auction expert!