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Grab Your Dream UK Home On The Cheap - Property Auctions

Do you know that every year thousands of UK properties and homes are sold at significantly below their real market value? The majority of these properties and homes are released through property auctions where regular savings of between 10% to 40% are available to the households market value. Even so, these property auctions continue to be used only by the elite and for the astute buyer/investor this generates a fantastic opportunity to secure a dream home/good investment at bargain basement prices.

As an example, at a recent property auction a studio flat was sold in London for a mere £9,000. In another, a 2 bed flat right on the south coast with a market value of around£100,000 went for just £14,000 at auction. And those are just a couple of examples of the bargains that people do find at property auctions. However it's also important to know the potential issues and problems when dealing with auctions and to understand exactly where the best deals are available. If you're interested in getting into the world of property auctions the following tips & tricks of the trade should be very helpful.

TYPES OF PROPERTIES FOUND AT AUCTIONS
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This is a guide to help anyone unlock the financial gain possible through UK Property Auctions. Thousands of homes are available at any given time with property auctions, most of which are sold at prices far below the household's market value. However it's important to know that there are potential issues and problems when dealing with auctions and to understand where the biggest bargains are available. Details of thousands of cheap, repossessed & auction properties are also available at Property Auction Bargains.

Its perfectly reasonable to expect to pay between 15% to 40% less for a property at auction than you would for the same property through an estate agent.

TYPES OF PROPERTIES FOUND AT AUCTIONS
Household Repossessions – Sadly for the previous owners, repossessions can often be picked up at bargain prices through auctions.

Investment Properties – Properties, which are valued due to the return on investment that they provide. Includes everything from individual office/shop investments to blocks of flats.

Rundown Properties – Auctions are great places to pickup properties that are unsaleable in their current state. The attraction here is if you can get such a property in a good location at a cheap price it’s perfectly possible to refurbish and resell on at handsome profits. Indeed there are individuals and organisations that make their living doing this. Unsaleable properties usually come under the following categories:

Derelict or in derelict areas.

Subject to severe disrepair.

Subject to local authority notices.

Subject to closing orders.

Offered with ambiguous legal titles.

Sold without access.

Sold with major fencing, paving, drainage or other similar responsibilities.

Sold subject to covenants or restrictions, which prevent normal use.

Exceptional properties – Include ones that have historical meaning and plots which ‘get in the way’ of major development projects.

TYPES OF PROPERTY AUCTION
Large Property Auction Composite – Tend to have over 100 lots. Expect well over 300 people to attend and the venue to be held in a large hotel or conference centre. Large composite auctions are likely to be run by a single auction house. The type of property may be restricted to just one (e.g. vacant possession houses, factories, house repossessions, warehouses etc) or may be a mixture of different types.

Medium Composite Auction – Have between 5 to 100 lots and will typically attract between 200 to 500 people, most likely in a hotel or conference centre. It’s similar to a large composite, only on a smaller scale.

Small Composite Auction – Offer between 2 to 5 lots and will attract upto 5 bidders. The likely venue is likely to be somewhere like a pub, restaurant, church or small hotel. Small auctions will generally follow a theme – for example the properties involved may have been part of a bigger group (such as a portfolio of properties owned by one company) who believe the best returns will be obtained by offering the properties for sale individually.

Single lot Auction – Usually for a house that is in great demand.

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