Buying property at auction is more than just buying a property. It comes with a number of advantages such as less expenses, faster deal and quick shift to the new home. Apart from these, buying property at auction is a hassle free process and involves easy conditions that the buyer is required to meet. By buying property at auction, you can even be the owner of a new house at premium location by spending much less than the typical value by following the auction route.
Moreover, buying property at auction is not limited to houses only; they are organized for a range of properties which include office spaces, business locations and other commercial establishments. However, buying property at auction involves some precautions as it is over once the hammer falls inside the auction room. You need to ensure that you complete all your efforts before the event inside the room. Depending on the kind of efforts you put in and your luck on the day, buying property at auction can be the turning point in your portfolio and you can walk off the auction room with a smile on your face! You can reap rich dividends by undertaking research and doing your homework in advance and in required way.
Buying property at auction has emerged as the favourite option for potential and experienced buyers looking to diversify or for the entrants looking to step onto the property ladder. This way of buying property at auction is quicker compared to visiting the estate agents for months and going through the time-consuming and tiring procedures and standing in queues for hours. As David Sandeman of EIG says, “Against a backdrop of continuing economic difficulties, and a slow property market generally, the auction market has fared relatively well over the last four years, and recently has shown some signs of tentative recovery”.
Buying property at auction is popular as sometimes properties are sold by landlords or property portfolio owners for cashing in on the property and take advantage of the easy and swift transaction process of the auction room. Buying property at auction is a good opportunity because properties listed on the auction websites are often due to bankruptcy or to clear debts. However, it does not mean that by Buying property at auction you are paying less as a decent property may be rated higher compared to the estate agent’s listing. This happens because of more number of prospective buyers interested in the high-value or prime-location property.
Under the process of buying property at auction, there is a guide price and a reserve price. The catalogue will often be less than the value at which the property is finally sold for. On the other hand, the reserve price is set by the seller and the auctioneer.