Steps to buy an auction property

Posted by highstreetauction on December 20th, 2016

It is a known fact that every year thousands of properties are sold at notably below the actual market value? Majority of the properties are released through auctions where a buyer can expect at least 10% to 40% of savings to the market value. Even then, property auctions are considered only by the elite people as it generates a fantastic opportunity for them to secure a dream home or a high return on investment when it is sold after renovation.

For instance, a studio flat was sold in auction for a mere £9,000 in London. In another situation, a 2 bed flat with a market value of upto £100,000 was sold for just £14,000 at auction. These are the examples of bargains that people find at property auctions. But to make the points clear, one should also understand that these properties do come with its own set of problems and one should which deal is good and which is bad for their pocket. If you are interested into getting these property auctions, below given tips & tricks helps you to make an excellent start.

Initially to begin with, it is a good idea to research about the property you are planning to buy in auction. Get the specifics such as its size, number of rooms, amenities and the auction rate of that property. Also do check whether you are liable to pay any taxed in you buy that property as you will be responsible for them.

It is not difficult to auctions for property as you can easily get a list of homes that are subjected for auction either through a local agent or via a county court recorder. Ensure you do the above step and compared the auctionable property value with the market value as it is not a good idea to buy such properties if it doesn’t get you any deal. Properties with good condition, but demands a minor alteration is good to consider, but if you notice major flaws, it is not good to consider that deal. Compare the property with similar ones, consisting of same specifics and amenities and take expert advice whether to consider the deal or not.

Make sure you can have sufficient amount to buy that property ahead of time. At auctions, you may need cash in hand or at least a deposit check for the minimum amount. Normally, the deposits will be around ,000 to ,000 and you must have sufficient cash and additional amount in your account.

Know your limits–It is good to keep a budget and not to exceed it. The thrill of the moment may push you to bid higher than what you have planned earlier, but it will definitely put you introuble if your payments become too high. In case, at any point of time, if you find the deal isn't right for you, walk away from it. Don't think you ought to buy that property because you are there and ready to. Make sure that property you are willing to buy demands restoration, which again costs your pocket.

About the Author:

The writer is an expert in the field of Online Property Auctions with focus on Commercial Property Auctions