Property auctions have long been seen by property investors as places to pick up a bargain. Many properties that go to auction do so because they have been repossessed, or their owner is bankrupt and
April 9, 2007 (Press Release) --
Property auctions have long been seen by property investors as places to pick up a bargain. Many properties that go to auction do so because they have been repossessed, or their owner is bankrupt and needs to effect a quick sale. However, auctioned property can often require more structural work and refurbishment, something to be aware of when making an offer.
In years gone by, auctions were often more likely to take place in the capital, but recent years have seen continued expansion to the regions and it is now possible to find a property auction in almost any local area. According to Thisismoney.co.uk, properties that go at auction can cost 40 per cent less than they would in a conventional market sale. That said, if there are several potential buyers and a 'bidding war' is initiated, the price can increase exponentially.
Another advantage of buying a property at auction is the relative speed of the process. Once the investor has registered with auctioneers, they will be sent information on auctions and properties in their region. If they see something that interests them, they can then contact the auction house in advance to arrange a viewing.
Assuming the investor wished to purchase the property, they will arrange a survey and have the necessary finance in place by the time of the auction. It is then just a question of entering the highest bid at the auction itself.
According to the Essential Information Group (EIG), a body that provides investors with news of auctions taking place around the country, there has been a "terrific increase" in the number of properties going to auction in recent years. Spokesman David Sandeman attributes this, at least in part, to the market taking advantage of new technology. "The internet's made it very easy for people to get information as to what's coming up at auction," he said.
However, Mr Sandeman also warned investors to be prepared to spend on any property they do acquire. "Generally properties at auction are unmodernised and could benefit from some work," he cautions. However, the type of work involved is "mainly refurbishing kitchens and bathrooms" and the buyer should be able to "buy something that's reasonably priced, refurbish it and get a decent return," he said.
According to EIG figures, residential auction transactions rose by 132 per cent between 1997 and 2006, from 7,883 properties to 18,303 and last year, auction sales accounted for just under two per cent of the property market.
In years gone by, auctions were often more likely to take place in the capital, but recent years have seen continued expansion to the regions and it is now possible to find a property auction in almost any local area. According to Thisismoney.co.uk, properties that go at auction can cost 40 per cent less than they would in a conventional market sale. That said, if there are several potential buyers and a 'bidding war' is initiated, the price can increase exponentially.
Another advantage of buying a property at auction is the relative speed of the process. Once the investor has registered with auctioneers, they will be sent information on auctions and properties in their region. If they see something that interests them, they can then contact the auction house in advance to arrange a viewing.
Assuming the investor wished to purchase the property, they will arrange a survey and have the necessary finance in place by the time of the auction. It is then just a question of entering the highest bid at the auction itself.
According to the Essential Information Group (EIG), a body that provides investors with news of auctions taking place around the country, there has been a "terrific increase" in the number of properties going to auction in recent years. Spokesman David Sandeman attributes this, at least in part, to the market taking advantage of new technology. "The internet's made it very easy for people to get information as to what's coming up at auction," he said.
However, Mr Sandeman also warned investors to be prepared to spend on any property they do acquire. "Generally properties at auction are unmodernised and could benefit from some work," he cautions. However, the type of work involved is "mainly refurbishing kitchens and bathrooms" and the buyer should be able to "buy something that's reasonably priced, refurbish it and get a decent return," he said.
According to EIG figures, residential auction transactions rose by 132 per cent between 1997 and 2006, from 7,883 properties to 18,303 and last year, auction sales accounted for just under two per cent of the property market.
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