Every year, thousands of UK properties are sold at significantly low prices at London property auctions. They are sold at prices much below their market value. This is possible because of the property auctions where regular savings between 10 per cent and 40 per cent are available to market value. Despite this fact, property auctions are limited to the elite or those looking to resell their property. Buying a property at London property auctions gives you a wonderful opportunity to secure your dream home at lesser price. Apart from this, it is a great way to invest money.
A studio flat was sold at mere £9,000 recently and a 2 bed flat valued at £100,000 was sold for just £14,000 at auction. These are only some of the examples of how properties are priced at London property auctions. You can see the kind of bargains possible when buying property through auctions. But it is also important to know how the auctions are conducted. You should know where the deals are available and ways to lay your hands on the best property without difficulty.
Types of properties at auctions:
Repossessions – These properties are available at real cheap prices. These properties are prized catch for new owners.
Investment properties – These include properties which offer high return on investment. They are a great opportunity for investment purposes. Such properties include offices, shops, and flats etc.
Rundown properties – Pickup properties include those which cannot be sold in their present condition. You cannot live in these properties outright but they are a great way to investment money. You can earn handsome amounts of profits by buying them at cheap prices and then reselling. If you get such a property at good location, then you can refurbish it and sell again.
Rundown properties 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 are historical in nature and plots which ‘get in the way’ of major development projects.
Information provided by an auctioneer:
- Construction details
- Accommodation details
- Viewing details
- Solicitor details
Usually, auctioneers publish a catalogue containing all the relevant information. These can be obtained from the auctioneer’s site approximately a month prior to the auction date.