Buying Property at Auction
Would you say that it is risky buying property at Auction in today's climate?
Asked on May 5 2013,
General in Dartford |
No, I think if you do your research and the property is in a good area then it could be a good buy. You do want a discount to the open market price so research is the key.
Answered on May 6 2013,
I wouldn't say it is necessarily any riskier buying property at an auction at the current time than it has been at any other time recently. The key when you are looking to buy through this channel, of course, is just to be as vigilant as possible.
This means having the home checked, surveyed and valued if you can do before you go to auction so that you are not buying something that looks like a bargain and turns out to be damaged or needs far too much work done to it.
The biggest risk when it comes to any auction, of course, comes in the form of spending too much. Make sure that you know what you have to spend and do not be tempted to go over your own limit or you risk overspending, and this will make it not worth your while.
Other than that, buying at auction is a great way to get a bargain if you know what you are doing.
Answered on May 20 2013,
No. If you approach it intelligently it is no more risky than purchasing from an estate agent. If you are unprepared in respect of finance or legal process - DO NOT BID! All of the necessary legal paperwork on an auction bid is available for download 2 weeks before. If your solicitor is happy with this paperwork you can bid. Similarly the property can be inspected and surveyed before the auction. Therefore it is entirely possible for you to have finance in place in the form of either a mortgage offer, or a bridging finance offer, before the auction takes place.
You risk spending money on fees and not purchasing the property, but this could happen in the general market. What the auction offers you is a serious opportunity to purchase below the market value to lock in profit. I would urge a serious investor not to see lost fees as lost money. When you do eventually purchase, if you are smart, you will more than compensate yourself. I have attached a fuller guide to bidding at auctions below.
Web reference: http://diligentinvestments.com/industry-news/auctions/mak...
Answered on Oct 6 2013,
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