Caution At Property Auction
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WITH a glut of property development programmes on television such as Homes Under The Hammer, it is not surprising that the popularity of property auctions in Britain is growing massively. But buyers keen to snap up a bargain, and who are new to the auction process, should exercise caution as many of them will end up overpaying. The reason for this is twofold. Firstly, it is all to easy to get swept up in the excitement and adrenaline of bidding in the auction room. Secondly, not everything that goes under the hammer is necessarily a bargain. Rather than getting carried away, buyers should remember that many properties at auction will be in need of massive repair and structural work so this needs to be taken into account when doing the sums. It is essential buyers do their research before bidding to avoid paying over-the-odds for the property because if you pay too much you may not get the mortgage - banks will only lend you what the property is worth. If buyers are unable to secure the loan within 28 days then they will risk losing thousands of pounds in the deposit they put down after they won the bidding. One way of avoiding getting caught up in the rush of bidding, while still snapping up a bargain, is to look at the lots before they go to auction, contact the seller and see if you can negotiate. Similary, wait until after the auction, examine the unsold homes and negotiate with the owner.
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Caution At Property Auction