Property Auctions: An Efficient Method of Purchasing Property
Many people who are considering on either purchasing or selling a property may be unacquainted that a sale by auction may be good or even better method of acquiring or selling property than the more traditional means of hiring a real estate agent. Property auctions in the UK has become an increasingly appealing method of buying and selling property. It is beneficial for both buyer and seller as it is a very transparent process. The sale is official as soon as the hammer falls on a successful bid and the completion date is already fixed.
This process of realization of assets is very advantageous for a seller as the amount of bidding competition often leads to the property achieving higher value than a private treaty sale. This is also true for prospective buyers as there are certain instances that he can purchase a home which is below the market value.
If you are a homeowner and would want to sell your property at an auction, you must be able to give possession at a fixed date, unless the sale is subjected to tenancies. This will usually be four or three weeks after the date of the auction. Thus, it is essential that you find a place where to store all your belongings and furniture.
Facts about buying in an auction:
• Auctions will usually give interested buyers limited time for an auction. The auctioneer will most likely be holding the auction three or four weeks after the property auctions catalogue are sent out.
• With these three weeks, the buyer will be given opportunity to visit or view the property and arrange for surveyor and other professionals to determine the overall costs that will be invested for the property to be improved. This report will determine if the property is worth buying.
• The buyer should also instruct the solicitor to inspect the title deeds for any tedious agreements or restrictions. This report should be with you at least weeks before the auction date.
• It is also important that you discuss and ask advice from your surveyor the upper or maximum limit of the price you should pay for property. In this fashion, you will not be bidding for the property with a price that is not worth of its true value.
• Your finances should also be organized even before the auction day as you will be required to give a deposit of 10 % of the total payment once you have attained a successful bid. You are also obliged to complete the transaction and pay the total mount within 28 days of the sale.
• If you are calculating the overall costs of the property, you should also take into account the cost of advice from the source lending you the money to purchase the property as well as the payments for the surveyor’s fees.
• Some house auctions may accept different methods of payment so make certain that you know what method the auctioneer will acknowledge for the sale.
• If there is a circumstance that you found a property that you truly desire to buy and is constantly worrying that someone else will outbid you during the auction then you can also opt to offer the seller a good price. If the offer is acceptable for the seller, then you can exchange contracts with him even before the auction. He then must withdraw the property from the sale.
Process of sale in the auction room
• As a buyer, it is important that you arrive in the auction on an earlier time. This will help you get a good seat as there are many auction houses that offer limited space.
• As mentioned above, there are instances that a property may be withdrawn from the sale beforehand, so you need to inquire over the phone if the property you are interested in is still up for sale. In this way, you will not waste your time attending the event as the property has already been removed from the sale.
• If you have any particular questions on the day of the sale, you can always ask the auctioneer and the other property auctions estate agents at the start of the auction. They are very approachable and are very well-briefed about the properties on sale.
• If you are not able to attend the sale personally, there are many auction houses that will allow you to bid over the phone or you can ask your solicitor to bid on your behalf. This is very wise especially if you are most likely to get carried away by the bidding frenzy and bid higher than your bidding limit.
• It is a popular misconception that an auctioneer might mistake a scratching of the head as an actual bid. Do not worry as an auctioneer is a professional and will be able to distinguish an actual bid. In the event that a mistake does happen, it is wise to tell the auctioneer straight immediately and not wait at the end of the sale.
• If you are the highest bidder at the fall of the auctioneer’s hammer, then you are legally committed to buy the property without further re-negotiations. Remember that it is only the price that is negotiated in the auction house and the seller will not give you any form of discounts.
• Upon completion of the contract, you will be responsible for insuring the property.
Real estate auctions create excitement because they bring together all the prospective buyers of a property which in turn creates direct competition among them. As a buyer that you equip yourself with the necessary knowledge and tips for buying at an auction as these can be factors that can help you make a successful purchase.
Tags: property auctions estate agents | property auctions estate agents | tips for buying at an auction | tips for buying at an auction | property auctions in the UK | property auctions in the UK | property auctions catalogue | property auctions catalogue | house auctions | house auctions