When seeking property investment opportunities, some people are deterred by rising prices; not to mention the growing trend for gazumping. Seeking buy-to-let property for sale or a great development opportunity can be tricky, especially when looking in a desirable area where property prices are high.
This goes some way to explaining the growing popularity of property auctions. If you’re considering buying a house at auction but aren’t sure what the benefits are, here’s a brief overview.
House Auctions – The Lowdown
House auctions regularly take place across the country. Generally speaking, the protocol is to examine the property online first, request details prior to the auction itself, then bid on the day. Most seasoned bidders go to auction with a firm idea of what they want to pay, and stick to a pre-agreed budget.
There’s a few things to be aware of when purchasing houses at a property auction:
It’s legally binding. Once the hammer falls, you’ve committed to buy, and failing to complete the purchase is illegal.
There’s no room for haggling. The agreed price at the end of the auction is the price you’ll pay – no exceptions.
Properties often have reserve prices. However, if the property doesn’t meet the reserve price, the vendor may choose to accept your bid after the auction.
10% deposit required. You’ll need to pay a 10% deposit if your bid is successful, and must also pay the 90% remainder within 28 days.
The Benefits of Buying a House at Auction
Here’s just a few reasons why house auctions make real sense in financial terms.
Help With Your Property Auction
If you’re keen to learn more about house auctions and how they can be used to grow your property portfolio, talk to The Buy2Let Shop team today. We’re property investment agents in London, and we have specialist knowledge of the process of buying a house at auction. We also have a wide range of properties on our books that aren’t available on the general market.
To learn more, simply visit The Buy2Let Shop website.