The Property Auction Option
By Andrew John Cocks | Parry Sound Real Estate Listings Sale
The Property Auction Option
Article by Edward D Parry
What do you think about when you hear the word “auction”? Maybe charity auctions come to mind, where the rich and famous buy things that we would probably never use, and could never afford. Or there is the timeless image of the unsuspecting person at an auction, who inadvertently bids by scratching his nose. Do these images make you curious about, or interested in, purchasing a house, piece of land, etc., through a property auction?
First things first
The first step in securing property through a property auction is to learn where and when a property auction will take place. That sounds like a piece of cake, but can be more challenging than you might expect. However, before you launch into the process, it is practical to address why properties are sold through auctions in the first place. Why would it be preferable to using a Real Estate Agent, or even selling the property directly to the buyer, without bidding?
Why auction?
Reasons why properties are sold through auctions include:
<ul style=”margin-top: 0cm”><li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The seller is interested in earning a profit through the sale<li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The home could be sold to settle debts involving liquidation, bankruptcy, etc. <li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The seller bought too many properties and needs to sell one or more of them<li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The property was a component of illegal activity, and officials who confiscated it want to get it off their hands. <li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>Due to a surplus of supply or a low demand, the property has not sold through other means<li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The property had been leased out, and at the end of the lease term, the legal owners no longer require the property.<li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The property is surplus property of a local, regional, or national government. <li class=”MsoNormal” style=”margin: 0cm 0cm 0pt; tab-stops: list 36.0pt”>The seller wants to invest the capital earned through the auction, in new properties Need-to-know info
After you have decided to purchase a house through a property auction, you will need to find out where and when local property auctions will take place. Some of the more traditional means include calling up contact numbers on “For Sale” and “Auction” signs you see in front of properties, and looking up auction houses in the phone book.
In the dawn of the Internet, you can search for auction houses by letting your finger do the walking (actually, rolling of the mouse.) Some websites make it a cinch to search for auction houses. You simply click a particular region of the UK, and then the auction houses that sell properties in that region pop up on the screen.
After locating auction house(s) in your area, you will want to learn more about them, before attending an auction. Learn how frequently they have auctions and generally how many properties are auctioned off at each one. Ask about the terms of service and customer service.
Why buy properties through an auction? They provide an array of benefits for both the buyer and seller, with the former being in your best interest. Using various methods, you can find auction houses in your area, and then discover how well they can serve you. After making the final bid, the sound of the auctioneer’s gavel will put a smile on your face.
Simon Harvey is an experienced writer in UK personal finance issues. He is a staff writer for Insurance Sorter in the UK.Get more information regarding buying your home at auctions.
