How To Buy Bargain Property At Auction


How To Buy Bargain Property At Auction

How to​ Buy Bargain Property at​ Auction
Do you want to​ invest in​ profitable property or​ simply buy a​ new home at​ a​ bargain price? if​ so, you want to​ consider property auctions.
Properties sold at​ auction are often owned by mortgage lenders after repossessions, former council / housing association homes or​ have being empty for​ some time after the​ owner passed away.
In each case, the​ owner has put the​ property on auction for​ a​ quick sale and​ this can lead to​ some great deals on the​ market value.
Finding an​ auction
As auctions tend to​ cater for​ property professionals, rather than the​ general public, advertising and​ awareness of​ auction houses is​ limited.
A good place to​ start is​ looking through the​ telephone directory, yellow pages or​ searching on Google or​ Yahoo.
Another good tip is​ to​ keep an​ eye out for​ For Sale signs outside homes .​
Where the​ board says 'for sale by auction', call the​ telephone number provided .​
You will either get through to​ an​ estate agent acting on behalf of​ the​ auction house, or​ you will get through to​ the​ auction house directly.
If you get through to​ an​ estate agent, ask them for​ the​ contact details of​ the​ auction house .​
The estate agent may be reluctant to​ do this, so it​ is​ worth being persistent.
Once you are able to​ make contact with the​ auction house, ask to​ be put on their mailing list .​
Although there is​ likely to​ be charge for​ this, you will begin to​ receive details of​ properties due for​ sale.
Before you bid
Having identified the​ property that you want to​ buy, you will need to​ arrange finance .​
For most people this will mean approaching a​ mortgage lender and​ it​ is​ important to​ do this in​ advance of​ the​ auction.
Remember once you win a​ bid, you are legally bound to​ purchase the​ property and​ you need to​ be able to​ pay within a​ set number of​ days.
The mortgage lender will require a​ basic valuation of​ the​ property, but it​ is​ advisable to​ invest in​ a​ full survey as​ the​ property may be at​ auction due to​ structural problems, which the​ basic survey would not pick up.
Before bidding for​ your desired property, you may want to​ attend a​ few auctions to​ get a​ better idea of​ the​ experience.
Winning your bid
Set yourself a​ price limit, but do not get carried away and​ bid beyond it .​
Having had a​ valuation done, you will have a​ good idea of​ the​ market value and​ should not go above the​ amount agreed with your mortgage lender.
If your bid is​ successful, you will be legally bound to​ purchase the​ property and​ will need to​ put down a​ 10% deposit of​ the​ property's selling price .​
You will be asked to​ sign a​ contract, which you would have seen before the​ auction and​ the​ seller will be legally bound to​ complete on the​ day.
Finally you will need to​ pay the​ remainder of​ the​ selling price within an​ agreed period, such as​ 28 days .​
Congratulations, you have just picked up an​ auction deal.






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