To make a great return on your investment, it’s important to find the right property, at the right price. Browsing high street estate agent windows may produce the occasional bargain; but savvy investors know there are better places to seek out buy-to-let property for sale!
A great place to look for cheaper properties is a house auction. Here’s some more details about the advantages (and disadvantages) of buying a house at auction.
The Benefits of Property Auctions
- Cheaper properties. If you’re prepared to roll your sleeves up and take on a project, house auctions are the perfect place to get started. At a property auction, you’re likely to find undervalued homes that come complete with planning permission. You may also find properties that require complete renovation, or ex-council houses – all going for far cheaper prices than they would on the general market. Expect to pay around 15% less than you would normally.
- Normally, the process of buying a house is riddled with pitfalls. Gazumping is rife, plus sellers are notoriously unreliable and may pull out of the sale at any point; leaving you out of pocket. At a property auction, it’s not possible to be gazumped. Once the hammer falls, the property is yours.
- Quick process. Buying a house at auction is far speedier than a traditional house purchase. Under most circumstances, the sale is complete within just 28 days.
- Flexible purchasing. It doesn’t matter if you can’t be present at the auction on the day. There are several ways to make a bid; including by phone (a member of the auction house staff will bid on your behalf), by proxy or even online. This means you’re able to select from a choice of properties across the UK.
The Disadvantages of House Auctions
- Upfront costs. In order to buy a house at auction, you’ll need to have 10% of the final asking price on the day – as you have to pay this upfront. The remaining 90% needs to be paid within 28 days. This means you must get your finances in order before bidding; and if you’re using a mortgage to fund your purchase, it needs to be agreed in principle in advance.
- There are risks involved. Auctions are unpredictable, and you never know what’s going to happen on the day. If you’re outbid, that means you’ll have wasted time by viewing the property, and if you’ve already paid for a survey to be done on the house, you’ll have lost that money too.
- Not always cheaper. In most cases, investors save a lot of money when they buy at auction. However, this isn’t always the case. Sometimes, bidding can be frantic, and this means the property sells for way over its estimated value.
The Buy2Let Shop Limited
If you’re thinking of buying a house at auction, and you’d like some help with the process, talk to The Buy2Let Shop team. We’re expert property investment agents, and we’ll assist with all aspects of the property auction process; including locating the ideal buy-to-let property for sale for your requirements.
To find out more, simply visit The Buy2Let Shop website today.