WHEN AND WHERE TO BUY PROPERTIES FROM AUCTION (CHEAP!)
Rather than sticking to the normal purchasing method of properties, have you ever considered buying a property from an auction? The experience and process of purchasing a property by auction is very different compared to your standard purchase; however, it can be exhilarating and profitable. Through buying at auction, you can fight for a property with others and the potential to get a decent house at a lower price than you would on the average market.
When should you buy properties from an auction?
You should purchase a property from an auction when you’re prepared. There are a lot of rules and legislations you should be clued up on before you go to an auction. It may be helpful to speak to property surveyors with experience in auctions so that you aren’t left unaware of your position and rights.
Once you purchase a properties from auction you will be required to place a 10% deposit on the same day. You will then be expected to finish balancing the book in a months time. This means before you attend an auction you should have your finances sorted. You should also be ready to pay in full for any purchases you make.
Make sure you view any properties you’re interested in before the auction. Vague terms such as ‘old’, ‘needs work’ and ‘great potential’ will become much clearer if you visit the property and see for yourself. The last thing you want is to purchase a property which is ‘close’ to bustling nightlife and culture, only to find out you’re right next door to a rampant nightclub!
Generally, there is no ‘right’ time to purchase from auction. Some believe that busy periods like the school holidays and the Christmas periods are a perfect time to buy as families are occupied with other activities, meaning there is less competition in the auction room. However, it is suggested that you keep an eye on the market and the listings auctions have available at all times if you’re actively searching for auction properties. Patience is key to finding a property that you like for a bargain price, and times of depression are better for purchasing as the competition is far less severe than in a booming housing market. You’re competing against others for the rights to a property so any time when there are fewer buyers on the market is better for you.
Where should you buy properties from auction?
There are a large number of auction houses across the Capital that will auction off homes. To get a feel for the kind of houses that are sold at an auction, it is recommended you regularly look at their listings and the type of properties for sales. This will help indicate what kind of properties that are for sale in the area and how much they generally sell for. You will also be able to look at past auctions and get an idea of the properties guide price and their actual selling price. This may give you an indication on whether you’re able to pick up some bargains or whether you’ll be facing stiff competition.
Each auction site has an overview of their last auction – showing you the selling percentage of the properties listed and the total amount of money made. This can give you signs of how well the auction does and when the best times to buy maybe. A couple of examples can be found below:
At Westcolt Surveyors, we know everything there is to know about buying a properties from auction, so if you’re in need of any advice or would like us to help you find a property, don’t hesitate to get in touch.