Property auction home >> Property Auctions - Tips For Getting A Good Property
Property Auctions - Tips For Getting A Good Property
Property auctions used to be rather dedicated
events, but now they have become quite conventional in the
UK. They seem to quality on TV all the time.
All sorts of different types of properties are selling at
auction these days. I have seen all from the perfect and
reputation, through the middle ground of properties ready
for reinstatement or improvement, and down to the dregs
of the defective and downright unsightly.
If you're thinking about investing in property, it will
be valuable receiving hold of property auction catalogues
for your region, even if you don't mean to actually buy
during property auctions. Study what's presented. Even better,
view some properties and be present at some auctions, as
this will help you cross-check the prices being asked by
real estate agents and auctioneers.
As a buyer, the auction way can offer you the chance to
get a good deal. There are three main reasons for this:
1. Often the auction mallet price will
be cheaper than that for a equivalent property sold all
the way through the high-street property agents, mainly
if there are few bidders on the day.
2. Properties with improvement or development
potential are often sold through auction, so if you're looking
for this sort of thing, auctions are an important place
3. The auction process is quick and certain.
The advertising period is usually only about three weeks
former to the auction and once the strike falls on the day,
a necessary deal is made and the property is yours, if your
So you can get a good covenant, but you do have to take
tremendous care when buying at property auctions . You should
ask manually, "Why did the seller choose to sell this
property at property auctions?"
Realise that sellers will be looking for some profit, in
return for taking the risk of being compulsory to recognize
a lower price than they would actually like. It may be just
the advantage of a quick sale.
However, some sellers may be using property auction to dispose
of a property that would not be simple to sell, by other
earnings. This is why you need to be suspicious.
The property may need important work, although this could
be the very motive for your attention, if you are a developer.
However, there may be more forbidding problems that could
be economically damaging. Examples are imperfect title,
rights of way issues, structural problems and dispute between
leaseholders and freeholders.
Many problems are hypothetical to be disclosed by the seller,
but in perform, you will most likely have to recognize the
problems yourself, with support from your professional advisers
such as surveyor and solicitors. Also, keep in mind that
with property auctions, there's only limited time to examine
these things, naturally just a couple of weeks. It can be
even less, mainly if the seller is slow to make in sequence
accessible before the auction. It is not infrequent for
important, new information to appear correct to the day
of the property auction. It is therefore fundamental to
have a good, receptive solicitor who will pull out all the
stops if compulsory, to help you choose whether to bid or
If you are staid about buying at property auction and you
are on the watch out for a good buy, then remember the following
1. Get the property catalogue early, so
as to maximize the time you have earlier than the auction
day. View the properties that notice you at the first offered
2. Get your economics sorted out honest.
Remember that if you are a unbeaten bidder, you will have
to pay 10% straight away by bank sketch, followed by the
remains on achievement (usually 28 days later). Don’t think
you can bid first and then assemble a credit later, if you
are unbeaten – the penalties for failure to pay can be grim.
3. If you choose to submission for a property,
ensure your solicitor gets the officially authorized papers
right away and knows the property auction date, so he can
carry out enquiries immediately.
4. Find out as a lot about the property
as you can. Talk to the neighbors. Try asking local estate
agents what they recognize.
5. Have a survey – try to get a quick,
but thorough survey, perhaps with a verbal report to save
6. Decide the highest price you can give
to pay and join to it on the day.
7. Be ready to be frustrated. On the day,
there may be several dedicated bidders for your lot, but
only one can be the champion. You may well have to write-off
your legal and review costs, together with a good deal of