Property auctions are what many typically think of when buying repossessions. Some lenders will auction a property immediately after repossessing it, as it’s guaranteed to be a quick sell to regain as much money possible they had lost on the given property. To find the auction houses, you must first decide on the location you wish to buy the property. Following this you can search online for the auction house(s) in the location and details of that area. Once you contact the auction house and inform them you are looking for repossessions, they will send you a catalogue of the properties due to go to auction soon, as well as possibly adding you to a mailing list.
Repossessed house auction
Although many are, not all properties sold at auction are repossessed. Those that go up for auction can be regular properties that the current owner could not sell through agents. Contrary to this, auction houses will have many repossessions, therefore it’s wise to consider this as an option if you are strictly looking for distressed property. In addition, each auction can offer property below market value. One of the reasons behind this is because the given property is exposed to those present at the auction, and those only. There is generally less competition when compared to a property that could be on sell at an Estate Agents with thousands of active clients on their books. However over-bidding at can occur, there is usually less information and guidance when buying from auction. For instance, the catalogues provided for each auction may have a ‘guide price’ included, but the properties often go for far more than suggested. Those that go to auctions on a regular basis may value the property themselves or have their own contacts, whether it be licensed surveyors or Estate Agents, that will do the valuing for them.
It’s recommended that those who have never been to a property auction before conduct research before attending and bidding. Once an individual gains knowledge of how a property auction works and can accurately value the properties for sale, there is huge potential to come home with a property comfortably below market value. However like all of the other gateways to repossessions, there are highs and lows of buying property under the hammer.
Recommended page: Key Areas
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