Buying Property At Auction
Buying at a property auction requires careful planning. Thousands of properties are sold at auction in the UK every year – and many are BMV (below market value), meaning there are plenty of bargains to be snapped up. But, unless you do your homework carefully, that auction bargain could turn out to be costly mistake.
Our team is here to help and advise you on how to source that bargain property at auction. It's important to view a property prior to bidding at auction, and with that in mind our viewing checklist can help you to remember all the relevant questions that you will need to ask.
What properties can you buy at auction?
Auction houses often focus their attentions on unusual, hard-to-value premises such as churches and village halls. You’ll also find pockets of land, repossession properties, properties in need of renovation and commercial lots with potential for change to residential use.
However, there has been an upsurge in residential properties that don’t necessarily require renovation or development, as vendors turn to auctions to achieve a faster and more efficient sale of their home. That means an auction could be a great place for first time buyers to snap up a bargain.
The main advantage of property auctions is that they usually ensure a quick and efficient sale. Completion is normally within 28 days, or 20 working days. For this reason, auctions are a preferred method of sale for repossessions, properties proving difficult to sell, properties that have been on the market for a long time (through an estate agent) and properties with development potential.
Local authorities, mortgage lenders and housing associations may also have a considerable number of properties they need to sell quickly. It can be financially beneficial for them to request a property appraisal and if the price is right sell at auction, recovering their money without the drawn out processes and higher costs of going through an estate agent.
Interest in property development and investment has increased quite significantly over the past couple of years and the number of people using auctions to buy property has subsequently risen. Such competition inevitably means auction sales can often achieve higher prices than private sales.
Property auction locations
The auction house contact information, for every property in our database, can be found within our members' area so that you can visit the auctioneer's website or contact them directly for further details on any property that piques your interest. They should be able to provide you with everything you need to know about their upcoming auction.