There are lots of benefits to buying at a property auction, which can be appealing to a lot of buyers from a range of circumstances.
Everyone likes the chance of a bargain, and property auctions are an ideal place to bag a cheap deal. TV programmes, such as Homes under the Hammer, demonstrate why the public is attracted to the auction process.
Once that hammer lands, the property is yours. There won’t be anyone backing out of the deal, no risk of gazumping, or the deal falling through due to a chain collapsing. You will avoid the uncertainty that you would get through an estate agent purchase, and the property will be yours within 28 days of the auction.
There is no quicker way to buy a house. With a fixed timescale known from the beginning, you will be completing on your purchase within 28 days of the auction. You will know how long you have to carry out any inspections or paperwork enquired, with no risk of missing out of the purchase.
Often, lots up for auction offer the prospect of adding value to the property through improvements, change of use (subject to planning permission), or conversion to suit your needs and requirements. This can help to generate higher resale profits, and for buyers looking for these types of property, auction is the best option.
Auction House, along with sellers’ solicitors, aim to provide all relevant documentation prior to auction. This includes information such as searches, title deeds, leases for tenanted property, as well as any relevant planning permissions. Legal packs are published online and are made available to download free of charge.
There is a level playing field when buying at auction, everyone has their opportunity to place their bids, rather than a first come first served environment which is common with estate agents. However, if you are very keen on a particular lot, you can put in a pre-auction bid, which would need to be very strong and at a level that might not be reached with competitive bidding in the auction room.
With auction, you only need to stay one bid ahead of your competitors and reach the reserve price to be successful. When bidding against other interested parties, you can gain the reassurance that others share the same opinion of the property’s value, and you can also be in with the chance of having the winning bid at a far lower price than you anticipated, and lower than you would have paid by other means such as buying through an estate agent.
If you are a property investor looking for buy to let houses, we sell a large number of tenanted stock, which mean you will start to receive rental income right from the day of legal completion. All the legal benefits of the tenancy agreement will pass over to you along with the responsibilities.