House Auctions
Introduction
Individuals can make a significant favourable investment in property using house auctions. There are many different circumstances where a property might become available for purchase at a low price, such as a house repossession by a bank or building society.
Repossessed houses tend to be sold at auction, as the owner’s creditors want a quick sale to recoup their losses. This allows any potential buyers to purchase some houses at very favourable prices.
Advantages Of House Auctions
The big advantage of house auctions is that the sale will invariably go through very quickly. It usually takes around 28 days for the sale to be completed. Most house sales that are completed via an estate agent take anything from three to six months to complete.
Another advantage of house auctions is that the buyer can end up having a relatively low bid for the property accepted, perhaps even when the bid is for much less than the recommended asking price.
Another huge advantage is that there is no chance of being gazumped at a house auction. Gazumping is when a buyer has an oral agreement with the seller to buy the property, but then loses out on the property when the seller accepts a higher bid for the property at the last minute. Once the auction process is over and the buyer’s bid has been accepted, the seller is not allowed to market the property in order to get a higher price.
Attending An Auction
House auctions take place all over the UK, usually at the local auctioneer’s premises. There are also a number of auction websites that will have pictures of the properties that a buyer might be interested in.
It is always wise to get a brochure of the properties before attending an auction. Visiting the properties before an auction takes place is also advised.
