10 Sep How to Invest in Property by buying at a Property Auction
When we speak about auction houses, it is usually connected to selling art, antique furniture or trinkets. But they are also a great route for those who interesting in buying or selling their property. Property auctions have often seen record numbers of buyers who make a winning bid and lock the property for themselves. Property auctions aren’t for the faint-hearted and if you cannot handle the heat it is best to approach property solicitors in London. In order to secure your dream property, you will have to enter into a bidding war, which is nowhere near being cordial.
With property prices on the rise and an increased demand for property, it has become substantially difficult to pick up an ideal bargain. While searching for properties you will soon notice that your dream home often tend to disappear quickly and by choosing the option of purchasing through property auction, you might find your options soon open up.
Traditionally it was preferred to buy or sell the property through an estate agent, but today property auctions have created a new and modern route for people who are interested in buying/selling properties. Property auctions are a better alternative to estate agents because the fees tend to be cheaper and there are chances for a bigger offer if there are numerous bids. Property auctions welcome all kinds of investors from first-time bidders to seasoned investors; they have become a preferred choice when it comes to property shopping.
What Types of Property to Expect at Property Auctions?
There are various types of properties available such as abandoned buildings, residential flats, houses, commercial plots, land, and garages. There are several reasons why people auction property. Properties found at auction houses are usually auctioned to avoid estate agent fees or trying to get a better value for the property. However something you need to keep in mind is that properties sold under property auction conditions might come with a whole raft of title defects. Upon placing a successful bid, you are expected to pay the ten percent deposit to the auctioneer which essentially means that you have entered into a legally binding contract. Should something later come to light that the property you have purchased has title defect, you will then be unable to back out of the transaction. This article from BBC Homes offers a good starting point before you consider the route of buying a property at auction.
Who Buys at Property Auctions?
Property auction is a great place for buy-to-let landlords who can pick a decent deal and steadily build their portfolio. First-time buyers find it a great place to look for their dream home but you need to be careful because once the hammer goes down three times you are committed to buying it often within a tight timescale. Potential bidders have an opportunity to look at properties well ahead of the auction at open days so that they have a clear idea of where they are investing. Those looking to auction property can find high bidders if they are lucky. So if you are interested in buying a home consult with our professional and experienced team of auction solicitors who will make sure that property conveyancing is a smooth and quick process, both pre and post auction.