04 July 2009: 21:57
UK Time |
Buying investment and rental property at auction. The best way to buy repossessed property. |
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Why buy at auction?Although most property purchases are carried out in the conventional way where the buyer and seller agree a price subject to contract, surveys have to be carried out, searches and legal formalities etc are carried out by solicitors. The whole process can take months and can fall through at any point right up to exchange of contracts.When you buy at auction on the fall of the hammer you are legally contracted to complete the purchase. You must pay 10% immediately and must pay the balance within 28 days. Best practice when buying at auctionMost property auctions take place in hotels. I would always recommend that if you have never bought at a property auction before that you do 'a dry run'. Apply for the auctioneer's catalogue and go along to get the feel of the auction process, making a note of by how much actual selling prices exceed guide prices. Points to bear in mindOnce upon a time, before property prices began their meteoric rise, it was quite easy for a non-builder or non professional developer to bag a bargain at auction. In recent times however the increased competition has made it much more difficult. But of course, with the current falling property market, those opportunities may return. |
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