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Auction: n. a sale of goods or property at which intending buyers bid against one another for individual items, each of which is sold to the bidder offering the highest price

Purchasing property at AUCTION used to be the private domain of property developers and wealthy individuals. In recent years however, AUCTIONS have become more common place and are more accessible to the novice. Any property purchaser can acquire investment and development properties or even a new home in this way.

CLICK HERE For Auction Service Providers Directory Listings


There are many properties available at auction that will NEVER be advertised in a high street window. T
here are many advantages of buying at auction over an estate agent, including:

  • CHOICE There is often a wider range of properties for sale than via a High Street Estate Agent. This can include repossessions, properties requiring renovation, fire damaged or derelict wrecks, ready tenanted properties, unusual buildings such as water towers or toilet blocks.
  • NO GAZUMPING There is no risk of being gazumped or the vendor withdrawing from the sale because the property is sold on the fall of the gavel and the contract is binding.
  • FAIRNESS As the property is available for sale on a set day, all interested parties have an equal chance of successfully purchasing the property.
  • TIME EFFICIENT All the legal work, surveys and financing arrangements should be completed prior to the sale enabling a speedy purchase and completion within a month.
  • BARGAIN PRICES Many properties are available at below market values

Many people think of AUCTIONS as scary places full of underhand dealings. This is just not so! It is advisable though, not to jump in at the deep end. A good idea would be to attend a few AUCTIONS just as a spectator to get a feel for how the bidding process works, which could help save future costly mistakes. If you know someone that has already purchased property at AUCTIONS then all the better, as you can draw on their experience and expertise.

One of the most common mistakes made, is for the Investor to get carried away
and bid above their ceiling level.

A successful AUCTION Investor will always fix their maximum price before they get to the AUCTION room based on their due diligence and correct assessment of the property. If the price of the property goes above this price on the day, they will remain emotionally detached and let the other bidder get the property at an inflated price. You should purchase with your head and not your heart.

One of the most popular methods used to purchase property at AUCTION is BRIDGING FINANCE. It gives immediate access to funds, so making purchasing property at auction as simple and as hassle free as possible. Most auctions require completion of the property transaction within twenty eight days, so speed of funds is crucial due to very short time scales being imposed.

A loan facility can be agreed in advance for usually 75% of the value of the property you wish to bid for, based only on the property’s valuation not on the purchase price. During the AUCTION the Investor can bid with total confidence knowing that the funds, subject to valuation, are available to complete the purchase. A deposit is still needed on the day of the auction which could also be funded by BRIDGING FINANCE if needed.

There are several other ways to finance AUCTION purchases. Check out the FINANCE tab for more information.

 

  • Check out the Auctioneers
  • Request the catalogues
  • Pick your property
  • Do your due diligence and research
  • Get your POWER TEAM in place
  • Get bidding!

 

 

 

 

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