10 Reasons Why You Should Buy Property At Auction
1. If you bid and win, you’ve won.
There’s no gazumping or gazundering; the property is yours and you can take ownership normally just 28 days later. That means you can plan your move and know that things are going to happen when they were meant to happen – rather than being stuck in a dreaded chain!
2. Contrary to popular belief you can use a mortgage to buy property at auction.
You just need to get your application sorted beforehand. Lenders will consider properties which need refurbishment – as long as the property has a kitchen sink and a toilet it doesn’t matter how dated the decor is!
3. Many organisations such as councils and mortgage lenders sell property at auction because it is regarded as a fair and transparent way to establish market value.
This can make the auction rooms rich pickings for repossessions and ex-council owned stock (and that includes libraries, police stations and public toilets as well as the more standard flats and houses!).
4. Variety.
No estate agent offers the incredible range of properties you can find for sale at auction. From doer-uppers to Grand Design projects (anybody fancy a water tower?) to self-build from the ground up – auctions offer a massive variety of every type of property.
5. Buying property at auction speeds up the notoriously slow conveyancing process.
Every property sold at auction has a legal pack ready for any interested purchaser to inspect before bidding. This means you don’t have to hang around for weeks waiting for replies to queries from solicitors.
6. You don’t have to play games with estate agents.
There’s no faffing or fluffing – you just go to auction stick your hand in the air, hold it up for long enough and you will buy the property. Simple.
7. Full transparency
In the auction room you’ll get to see the actual people you’re competing against and see that they are real! Auctions offer full transparency to buyers and the opportunity to eye-ball and (hopefully!) outbid your competitors.
8. Could be cheaper
If you do your homework, buying property at auction really can be cheaper than buying with an estate agent. Make sure you properly cost for any works and know the local prices in the area.
9. Buying property at auction is the most convenient and easiest way to buy property.
Admittedly, sometimes you may get outbid – but when you win – the process of completion is straightforward and there is none of the hassle or ‘ifs’ and ‘buts’ you often find with private treaty sales.
10. Bidding and winning property at auction is better than sex.
And chocolate… The thrill, exhilaration and excitement you’ll feel, will hands down beat most any other experience in your life (although I have to warn you – it is addictive!).
This blog post was written by Samantha Collett, author of“How to Buy Property at Auction” (Constable & Robinson) March 2014
Twitter @whatsamsawtoday
What Sam Saw Today: Confessions of a Property Developer
