10 Reasons to Purchase Property at Auctions
I visited many property auctions going back around 15 years ago. There was a time that every month through the post I would regularly receive property auction catalogues and I was always excited to see the listings close to where I lived and be tempted in by the low guide prices! Most times the guide price, though a good % below the average price for the property, would sell for more.
Property auctions were really trending thanks to television shows such as Homes Under the Hammer, Grand Designs and Location, Location, Location. During the 2,000’s and on to 2010’s these shows pulled in millions of viewers and will have helped countless people purchase homes via auction. Many an afternoon, I’m sure many of our readers too, will have been spent with a cup of tea and biscuits whilst watching a couple on television purchase their dream home at auction and tackle the renovation – It was always all about how much they paid in full and what it was worth in the end, right!?
What type of property are sold at auctions?
It was very much regarded that property at auction were those to do up or those with problems, the stock that could not sell at the estate agency and instead needed motivated cash buyers / specialists. Also, those property which were repossession thus in control of banks looking to sell quickly to release capital would regularly be seen as lots in auction catalogues.
To be honest you can find any and all property at auctions. This means from homes that are ready to move in to, maybe the vendor wants a quick sale, through to land with planning permission.
Why purchase at a property auction?
- You are likely to make a purchase below market value.
- You can still carry out our own surveys / viewing / checks prior to bidding at auction.
- You can find all property types from renovations to new builds including building plots, agricultural land, commercial property and more.
- You will acquire ownership faster (usually within 30 to 60 days).
- You will find property that might not be listed with estate agencies / property portal websites.
- Legal paperwork is mostly done upfront for the potential buyer, prior to bidding, to view saving time.
- The price you get the property for is the price you will pay (commissions depending to auction agent). No chance to be gazumped.
- You don’t have to be a cash buyer only as lenders will also provide finance for auction purchases.
- Property auctions are frequent and over most parts of the UK and there are many property sold this way so you have plenty of choice.
- You can also make pre-auction offers and purchase prior to the auction running.