Is a Property Auction right for me?
With the convenience of technology and modern processes, buying or selling property doesn't have to be a long-winded journey.
Property auctions offer an attractive alternative for those seeking fast results with added rewards - unlocking the door to your perfect home in no time
Take note though – there are some potential risks associated that require careful consideration before diving in.
Here's what you might want to bear in mind about this process:
As a seller:
Selling a property at auction can be an ideal option for those looking to avoid the setbacks of potential buyers not following through.
Auction bidders typically come ready and eager, meaning you won’t have to wait around reaching out or hoping someone comes along who wants your house.
When considering this method, remember that there are fees associated - usually about 2.5% of total sale cost plus any legal and advertising costs incurred during the process.
Selling a property can be unpredictable, but there are certain routes which may guarantee faster results. You might find that you receive offers prior to auction - an attractive prospect for many sellers who would like to take out the uncertainty of bidding and reserve pricing. After all, if someone is eager enough, they're likely attend anyway with their bids.
On acceptance, buyers will usually commit 10% as part payment immediately while settling the remainder within 28 days – siding this way really could speed up your selling process from start to finish.
Don't worry either: even though your property didn't meet its reserve at auction it doesn’t mean all hope is lost; simply discuss any lower price negotiations afterwards directly with potential bidders should you still require a sale quickly.
As a buyer:
No matter the condition of a property, it is wise to enter any auction with your eyes wide open and do your research as much as possible before buying.
Have professional advice on hand and inspect the property in advance - budgeting for repairs where necessary.
Ensure you have read through all relevant legal packs before bidding; having an independent solicitor conduct their own pre-contract investigation can provide peace of mind about one's knowledge about title-based liabilities associated with purchasing at auction.
Before entering the auction, it is important to consider potential charges and consider a contingency plan should you not be able to meet all requirements.
Ensure you have proper lender approval that only requires survey confirmation for acquisition of your desired property; otherwise, failure could result in loss of deposit or even more serious repercussions like legal action from the seller.