Buying at auction
Buying at auction is just one way to buy a property, could it be a potential way for you?
Auctions can be very exciting, buying at auction opens up a lot more potential investment opportunities. So why don’t more of us go and buy at auction? Because for someone who doesn’t know what they are doing it can be terrifying and extremely costly.
So let’s try and bust a couple of common misconceptions about auctions:
- That properties sold at auction are either repossessed properties or problem properties – totally not the case
- That you have to be a cash buyer – 30% of people at auctions are there for the first time and don’t use just cash to purchase
There are of course plenty of other ways to invest in property so here is a list of pros and cons of buying at auction so then you can decide which is the best option for you:
PROs-
- Certainty & Speed
- Transparency
- Fairness
- Straightforward process
- Greater choice of properties
- Choices of ways to bid
CONs –
- Less time for surveyors & solicitors
- Being ready with your financials
- Its easy to go over budget
But remember auctions aren’t just for the experts, over the past decade they’ve become increasingly popular with buyers who want to avoid the traditional house buying chain. At an auction, the sale is agreed then and there so there’s no risk of everything falling through at the last minute. Auctions are a great way to avoid lengthy and uncertain buying procedures – but be warned: as soon as the hammer falls you’re locked into paying, so be prepared.
There are so many factors to consider when buying at auction so before you go ahead and do this please make sure you have done your due diligence on how to buy at an auction and what to expect, the property and the auction house and their procedures.
