Property at Auction Investing-Buying Your Home Under the Hammer
Many people know auction houses as places where antique furniture, trinkets and art are sold. However, not many know it’s a perfect place to buy a home, whether you’re a homeowner or a potential buy-to-let landlord. Over the last few years there has been a record number of property buyers who have turned to these auctions, made bids and continued to lock in property purchases in a couple of minutes.
While it sounds easy enough it’s not for any fainthearted investor. Bravery is a virtue and be ready to enter into the world of bidding headache towards securing a dream property or buying your property under the auction hammer.
Picking up a great bargain is hard today due to the increased property demand and high prices of property. Homes usually disappear as fast as they are put on the market. In most cases, potential property investors usually see the deal they were eyeing disappear through their fingers and have to begin the entire process of looking again for a great property to buy.
The main route to sell or buy a property typically is through estate agents or online portals like Rightmove or Zoopla before seeking the help of an agent. If you have some patience and ready to learn how it’s done and be tolerant of an auction, securing a dream property or investing to build a unique buy-to-let portfolio is assured. For a seller, buying under the hammer comes with a lot of benefits considering the fees are much cheaper in contrast with those of estate agents and getting bigger offers is much easier in case the bids are more.
Property available for sale
You will find that most of the auctioned properties are usually dilapidated and abandoned buildings most people, buyers included, have given up on. In addition, properties also find their way into auctions for many reasons, including avoiding the exorbitant fees most estate agents charge or simply seeking a better price for a property in an auction.
At the same time, organizations and people who want sales to be concluded faster turn to auctions, such as institutional investors, bodies in the public sector like the police and councils and long term property investors.
Auction fees are only about 2 percent in addition to VAT. Sometimes the fees can be very low. After the hammer has fallen, sales are guaranteed. Through the hammer you can access lots of properties such as commercial plots, residential flats, garages, land and mixed use type of developments, among others.
Who can purchase at auctions
A property auction is the perfect place where as a buy-to-let landlord you can pick up great deals and build your portfolio. Small developers and professional investors have always turned to auctions for better deals.
First-time home buyers can also turn to auctions for their first home, including any person thinking about upgrading to better property. However, what you should always remember is that after the hammer has fallen on a winning bid, commitment to purchase the property is considered sealed and you must complete the purchase within a given or tight timescale.
In case you are still looking for a buyer for your current property or home and you don’t have ready finances, buying under the hammer will be problematic. Nonetheless, every potential buyer is given the option to view the property before the auction begins mostly during prior organised days.