Buying property at an auction can be beneficial for property buyers in many ways. It offers property buyers with an opportunity to purchase a property at a rate usually much lower than standard market rates.
Property auctions can be beneficial for independent buyers as well as commercial property investors looking for good deals on properties. However one needs to be careful when purchasing at an auction. If proper care is not taken, buying property at an auction can cause problems that could have been easily overlooked with proper planning and knwoledge.
Due to the ongoing recession and downturn in property market over the past 18 months, house prices in UK have fallen continuously. Although all in all the decline in the property market negatively affects most home owners and property investors, the falling house prices can provide opportunities for those wishing to profit form lower f prices. Lower prices can be seen as a good time to purchase or invest in property if finance is available.
Most property buyers look at estate agents for buying a property. However there are other sources such as Property auctions that can prove beneficial financially.
In addition to properties sold by Estate agents in UK, approximately 30,000 properties are sold every year at various property auctions across the UK. Properties in auction can often be purchased at a much lower rate than the prevalent market rates as a quick sale is often required by auctioneers. Quite often it is possible to purchase a property at more than 30% lower than the usual market rate charged by buying via Estate agents.
Property auctions often also offer a wider range of properties for sale including properties such as churches, village halls and commercial lots available for sale with potential for change to residential use. As an individual buyer however, you may find your self in competition with other professional property developers or Estate agents.
Buying property at an auction requires careful planning, attention to detail and some knowledge of the action process. If you are successful in purchasing a property a an auction, the rewards can be priceless.
However purchasing a property at an auction requires careful planning and groundwork on your side or else buying at an auction can quite easily turn into a nightmare and something you will regret later.
Property advisors often advice buyers to take notice that sometime properties that are being auctioned may seem attractive at the start but may suffer from hidden extras such as dry rot, planning restrictions, or even structural damage to the property being auctioned.