For example, at a recent auction a studio flatwas sold
in London for a mere £9,000. In another, a 2 bed
flat right on the south coast with a market value of
upto £100,000 sold for just £14,000 at auction.
And those are just a couple of examples of the bargains
that people do find at property auctions. However it's
also important to know the potential issues and problems
when dealing with auctions and to understand exactly
where the best deals are available. If you're interested
in getting into the world of property auctions the below
tips & tricks of the trade should be very helpful.
following is a guide to help anyone unlock the value
available through UK Property Auctions. Thousands of
homes are available at any given time with property
auctions, most of which are sold at prices far below
market value. However it's important to know the potential
issues and problems when dealing with auctions and to
understand where the biggest bargains are available.
Details of thousands of cheap, repossessed & auction
properties are also available at Property Auction Bargains.
perfectly reasonable to expect to pay between 15% to
40% less for a property at auction than you would for
the same property through an estate agent. For example,
at a recent auction a studio flat was sold in London
for a mere £9,000. In another, a 2 bed flat right
on the south coast with a market value of upto £100,000
sold for just £14,000 at auction. And those are
just a couple of examples of the many bargains that
people find at property auctions each and every week.
OF PROPERTIES FOUND AT AUCTIONS
– Sadly for the previous owners, repossessions
can often be picked up at bargain prices through auctions.
properties – Properties, which are valued due
to the return on investment that they provide. Includes
everything from individual office/shop investments to
blocks of flats.
properties – Auctions are great places to pickup
properties that are unsaleable in their current state.
The attraction here is if you can get such a property
in a good location at a cheap price it’s perfectly
possible to refurbish and resell on at handsome profits.
Indeed there are individuals and organisations that
make their living doing this. Unsaleable properties
come under the following categories:
or in derelict areas.
to severe disrepair.
to local authority notices.
to closing orders.
with ambiguous legal titles.
with major fencing, paving, drainage or other similar
subject to covenants or restrictions, which prevent
properties – Include ones that have historical
meaning and plots which ‘get in the way’
of major development projects.
composite – Tend to have over 100 lots. Expect
well over 300 people to attend and the venue to be held
in a large hotel or conference centre. Large composite
auctions are likely to be run by a single auction house.
The type of property may be restricted to just one (e.g.
vacant possession houses, factories, warehouses etc)
or may be a mixture of different types.
composite – Have between 5 to 100 lots and will
typically attract between 200 to 500 people, most likely
in a hotel or conference centre. It’s similar
to a large composite, only on a smaller scale.
composite – Offer between 2 to 5 lots and will
attract upto 5 bidders. The likely venue is likely to
be somewhere like a pub, restaurant, church or small
hotel. Small auctions will generally follow a theme
– for example the properties involved may have
been part of a bigger group (such as a portfolio of
properties owned by one company) who believe the best
returns will be obtained by offering the properties
for sale individually.
lot – usually for a property that is in great
aren’t as easy to find as you might expect. Traditionally
auctioneers get more than enough interest from in-the-know
regulars so they don’t need to spend much money
on costly advertising to the public. Here’s where
the list of auction houses that comes with this guide
becomes invaluable. There are details on each auction
house including which area the auction house covers.
Go through the list and identify ones, which cover the
areas you are interested in. Then:
the auction house and ask them when their next auction
is likely to be held. Ask them to put you on a mailing
list, which details forthcoming auctions. Some may charge
a small fee for this, others offer the service for free.
a list of questions for each auction house you contact.
These should include:
you have a mailing list?
long do you keep people on your mailing lists and can
you let me know if I am about to be removed?
type of properties do you auction?
may also be worth subscribing to certain pedigree property
magazines. These include Property Auction News, Under
The Hammer and Property Week. Local newsagents usually
INFORMATION AN AUCTIONEER WILL PROVIDE
they will provide the details of the properties going
under the hammer at their auctions. These tend to be
more detailed than the snippets given by estate agents
(there are laws such as the Property Misdescriptions
Act 1991 which make it illegal for auctioneers to give
false information about a property). On the whole, for
any given lot they will provide:
details (e.g. 3 bedrooms etc)
(e.g. refurbishment required)
usually publish a catalogue with the lot details –
this is a book detailing the various properties available
at auction. These will usually be available a month
or less prior to the auction date.
banks/building societies can be sheepish about revealing
that they are selling repossessed properties so you
need to be alert in the auction for clues. Auction adverts
may reveal that a bank may be the seller of a number
of properties, or the auction catalogue may state a
phrase such as ‘on instruction of a liquidator’
or something similar – this should tell you that
the property being sold is a repossession. If you are
unsure, ask the auctioneer directly if the lot being
offered is a repossession.
PROPERTY AUCTIONS NEAR YOU
are several thousands of properties available for auction
at any given time all over the UK. It's important to
understand how auctions work before purchasing a property
from one. To find out where you can get hold of a list
of UK property auction venues and websites of auction
properties for sale take a look at my resource box below.
I wish you every success in finding your dream bargain
home at auction.
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