Although many people are interested in property auctions, there is commonly quite a lot of confusion around what exactly a property auction entails. Buying a house at auction can come with some great benefits, especially if you are a first-time buyer so we want to shine a light on how property auctions work.
In this article we will delve deeper into auction properties, the benefits of property auctions and where you might find houses for sale by auction, from local to nationwide properties. We are based in Crosby, Liverpool and offer a range of conveyancing services for clients in the local area and beyond.
A property auction takes place when interested buyers bid on a property, with the highest bidder usually taking the property. It’s a great way for the owner to drive interest from potential buyers and likewise a great way to snap up a bargain property.
Once an auction offer has been accepted, the buyer will pay the deposit as they do in a normal house sale. Generally, the process is a lot faster than a normal house sale as any pre contract issues and negotiations are skipped and it’s straight to exchange.
One of the benefits of property auctions is that the turnaround time is a lot quicker because there’s a lot less wait time when offers are put down. Because the sale process is sped up you will therefore own your property or new home a lot faster. Your sale or purchase is less likely to fall through as contracts are exchanged and deposits are paid immediately.
However, do be aware that when you buy a property at auction you might have a limited chance to see it in person. There are so many different types of properties and you could be buying a property that has faults or needs certain fixes. It is very much ‘sold as seen’ and you must do your homework before making offers. The property brochures are available, a lot of time, prior to the auction date.
Some buyers may be looking to renovate a property which makes property auctions a great option, but if you’re uncomfortable with the idea of cleaning up some of the previous owner’s mess, then a regular property sale might be for you.
It’s also a good idea to plan before an auction to understand what price you could afford. It would be easy to go into a property auction and get carried away. You don’t want to make an offer on a property you can’t afford or for more than the property is worth. Check out the local area, Zoopla, Rightmove and the likes to compare the property market. Property auctions should be done with guidance and calmness so you don’t waste the auction fees.
In a private sale you have more time to think about each factor and get to know the house more. You should consider which option might be best for you in the long run.
During the auction process there are several things that usually happen. First, a seller will agree to sell their property at auction and they will sign some terms and conditions.
Once they have decided to auction the property, they will then market it with the auctioneer and set up a reserve price. The reserve price is indicative of what the auctioneer expects the property to sell for. If you are a bidder you will then begin bidding on the property. If you place the winning bid at the auction, you usually pay a deposit, which is usually around 10% percent of the purchase price. You should always fully read any Contract, Agreement or Terms and Conditions before bidding at auction.
Are you looking for a property for sale at auction in Corsby, Liverpool? If you’re looking for a property to buy at auction, it’s a good idea to do your research. Often you can find properties for auction on the usual property listing sites and through residential property listing agencies. The best place to search is with the local auctioneers. At Black Norman, we work with the best Auction Houses in the city and are able to point you in the right direction, if required.
To get a better understanding of the process, we would recommend speaking to one of our expect property auction solicitors. Many of our solicitors work in our dedicated property auction department and can offer you great advice on finding properties that are going to be sold at auction.
Whether you’re looking for a property to work with our auction department or our property purchase solicitors, Black Norman has over twenty years working in conveyancing. We can offer you a seamless bespoke service.