There are currently more houses being sold at auction than ever before. This seems amazing in view of the worries about the property market, but it’s a fact. It seems there is something about auctions that tempts buyers even in difficult times.
So why buy an auction property? Could you as a buyer benefit from this boom in auction sales?
Buying property at auction actually has quite a number of advantages over the conventional method of purchase. Here are some examples.
Although house prices are not rising the way they were a short time ago, they are still quite high. An auction offers you a better chance of a bargain than the conventional route.
One of the most frustrating aspects of house-buying in the conventional way is that, even after your offer has been accepted by the seller, you can’t be certain your purchase will go through. The seller is still free to gazump you (i.e. accept a higher offer) or take the property off the market. When you buy at auction, it’s legally binding as soon as it’s knocked down to you, so you know where you are.
For the same reason, it’s all much quicker. Even after your offer is accepted, you can wait months before completion.
Buying at auction means there is no “chain”, either from the seller or the buyer’s side.
Buying property at auction is a very transparent process. You can see when the bids go in and you can judge immediately what the competition is.
Many people have had the experience of seeing their dream house for sale and putting in an offer, only to be told they are just too late! At an auction there is no such thing as “first come, first served” – everyone has an equal chance.
If you are buying a tenanted property, you can start receiving tenancy income immediately.
It is simply not true that the only properties sold at auction are repossessions or properties that could not be sold any other way. Sellers may choose to sell at auction for a variety of reasons, including speed and absence of a chain. You can find some extremely attractive properties at auctions if you keep your eyes open.
Most of all, many people enjoy buying at auction simply because it’s more exciting than any other method of buying property! Those who are used to buying at auctions say there is a buzz and drama that you don’t find anywhere else! If you are a newcomer to auctions, you may find it intimidating at first, but if you persevere you may even get addicted!
There are certainly risks about buying property at auction and you need to be aware of these. But once you realise all the benefits of auction buying, you may decide you don’t want to buy any other way!
Please note that the FSA do not regulate commercial loans or commercial mortgages