Selling and buying property can be a complicated process, there’s the showings, the negotiations, and surveys that all need to be completed before contracts can be exchanged. Owing to the complexity of the transaction data shows that almost 40% of private sales are never completed.
In part, this is due to overvaluations by estate agents, undervaluation’s from lenders, and a multitude of other factors that can all delay or impact a property sale. For this reason, many home buyers are turning to auctions as their method for buying property.
There are a few things that will need to be in place before bidding on homes. You will most likely need to register with the auction house on their website before being allowed to bid, and you will need to make sure that your finances are in place. Most auctions expect the transaction to be completed within 30 days of the sale so you need to be able to move quickly.
While this may seem daunting to many, there are actually some advantages attached to acquiring property in this manner.
Here are a few points to consider:
Speed
Transactions can be completed very quickly with the entire purchasing process moving much faster than conventional homes sales. After a successful bid, you will normally need to pay a deposit of 10% and then finalise the sale within 30 days. Unlike buying a home directly from sellers this can mean a faster completion with no chain involved. Leaving you free from any problems further down the line that can result in the chain collapsing.
Visibility
In a normal sales negotiation, the offers made by other sellers are invisible until the estate agent calls to tell you that someone has beaten you out. Sales at auction have the benefit of being completely transparent, providing you with complete access to bids and amounts, so you always know what you are up against. This removes any stressful guesswork when you are trying to ‘win’ property as you will always know when your price has outbid the previous bidder.
Choice
Properties that are listed in the auction catalogue can provide a wide range of options. Some homes will be repossessions or properties that may have been abandoned for a long period, but some will be at the top end of the market. Many homes never make it to the traditional housing market, and this gives buyers a much larger scope. Many homes may need more work than the typical buyer is willing to take on, and this allows those that are willing to renovate the chance to snag a real bargain.
Auction properties are becoming a viable option for home buyers and investors looking to make a purchase, and homes being bought this way are increasing. For many buyers, the speed, lack of a chain, and the absence of pressure to make a feasible offer make the auction process an appealing way to invest in property. The numbers reported by large auction houses demonstrate a substantial increase in homes sold, with some showing year over year increases of 126% in property sales values. Even first-time buyers are using property auctions to purchase their first home.
All information posted on this website is merely for information purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information on this website, you do so at your own risk