Buying property through an Auction or Pre-auction?
Thanks to the long awaited economic recovery and the property market being on the up, many of us are now feeling confident about investing our hard earned cash in properties in the UK.
But when it comes to investing in the property market, we all have one thing on our mind: How and where to find a property bargain? How to find a solid buy to let investment property?
The answer which often springs to mind is to purchase a property through a Property auction. But is it really the best way to secure a property? Are you actually guaranteed to pick up a bargain and is there no better way to source a property below market value?
First of all, let’s have a look at the Pros & Cons of buying a property through a Property Auction.
• You could bag yourself a bargain by purchasing a property below its market value.
• It’s usually a quick process. Once your bid has been accepted, contracts are usually completed within 28 days.
• You can not be gazumped. Once the sale has been agreed it is binding.
• The type of properties usually on offer are in need of some serious TLC hence the reason they are beeing sold at auction and not on the open market.
• Buying through an auction is very consuming and can be expensive. Once you find a property which is of interest, pre-auction, you will need to visit the property, estimate the cost of any work required, organise surveys… You also need to have all the searches and legal enquiries sorted out before you are ready for bidding.
• There is no guarantee that you will definitely secure the property. If you are not the highest bidder then I am afraid to say that all the work you have carried out prior to the property auction will have been done for nothing.
• You could end up bidding too much for the property as it’s so easy to get caught up in a bidding war during the property auctions! Keeping the excitement and adrenaline in check during the auctions is very important.
• You have to organize finances before you attend the property auction. It’s fine if you are a cash buyer but you need to be very organized if you are a mortgage buyer as you will need to complete on the sale within 28 days.
• You need to pay a 10% deposit as soon as the sale has been agreed at the property auction. You can not change your mind once your bid has been accepted. If you do, you will lose your 10% deposit and you could also be sued for any loss incurred.
So it is clear that buying properties through a property auction is a viable option but it needs to be approached with great care.
But there is an easier and safer alternative to purchasing through an auction.
- How about securing a property which is already discounted by 25%?
- Due diligence has already been carried out for you so you are safe in the knowledge that the property is a viable and sound investment?
- You are guaranteed not to be gazumped!
- You don’t need to pay a 10% deposit as it would be usually the case through an auction.
Interested? Read on…
The Empire Property Group is a property investment company sourcing highly discounted properties for new property investors and already established landlords. We are property investment experts so we can guide you and help you find the best possible investment based on your budget and financial expectations. We offer a One stop shop ranging from sourcing a property, negotiating the discount, helping with finance, organizing conveyancing as well as Lettings and managing your property. If you are looking to achieve financial security through Property Investment, YOU REALLY NEED TO KNOW ABOUT OUR FANTASTIC INVESTMENT OPPORTUNITIES. We are able to offer our clients genuine discounted properties nationwide, including bank repossessions and pre-auctions properties. To receive details of our latest Below market Value Properties enter your details above or call us on 0208 339 6777.