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Investment Tips

10 reasons why you should buy a property at auction

property at auction

1. One-day job!
It is fast. If you emerge successful in bidding, you will be required to sign a formal contract and you can deposit the required sum of 10 per cent on the same day. This way, the chances of counter offers or long waits are eliminated.

2. Transparency
Everything is transparent. You can view, download and go through the legal packs for every property at auction as soon as the catalogue is out. So, you will know what exactly you are buying.

3. All types of properties
You name a property, and you will have it at auctions. Whether you are looking for a house, flat, garage, commercial space, office, former public lavatory, alleyway or plot of land of – the auction houses have them all.

4. Do not have cash? – No problem
It does not matter whether you have cash or not. You can always take the services of mortgage providers. Another option is bridging loan if you are facing a short term financial problem. You can rely on bridging loans if there is a gap between the sale and completion dates.

5. Establish market value
Auctions are considered a fair way to determine market value by organisations such as charities and mortgage lenders. Reversely, as a buyer, it means true value for your money.

6. Equal opportunity for all
All parties in the room have equal opportunity to participate in the bidding process. The bidding is fair, without biases.

7. A good deal can be just a ‘hammer-fall’ away!
Some properties come with no or very low reserve prices. Depending on the day and with a bit of luck, you can have a prize catch.

8. Full of excitement and thrill
The high-voltage environment of an auction can be really exciting. Even if you do not win, you learn a lot and gain experience. It is worth visiting an auction as it is better than a deal falling apart after long negotiations, sometimes extending over months.

9. No need to visit physical auction house
If you are stressed by the hectic activities at auction houses, you always have the online option. You can buy your property from the comfort of your home through phone bids, online bids and proxy bids.

10. It could be your chance
If you are an aspiring property developer looking for an opportunity, then auctions could just be the right thing for you.

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Paul

The author Paul