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Property Auctions - Grab Your Dream UK Home On The Cheap by Tukshad Engineer Did you know that every year thousands of UK properties
are sold at significantly below market value? The majority of these
properties are released through property auctions where regular savings
of between 10% to 40% are available to market value. Even so, property
auctions continue to be used only by the elite and for the astute buyer/investor For example, at a recent auction a studio flat was sold
in London for a mere £9,000. In another, a 2 bed flat right on
the south coast with a market value of upto £100,000 sold for
just £14,000 at auction. And those are just a couple of examples
of the bargains that people do find at property auctions. However it's
also important to know the potential
TYPES OF PROPERTIES FOUND AT AUCTIONS Repossessions – Sadly for the previous owners, repossessions can often be picked up at bargain prices through auctions. Investment properties – Properties, which are valued due to the return on investment that they provide. Includes everything from individual office/shop investments to blocks of flats. Rundown properties – Auctions are great places to pickup properties
that are unsaleable in their current state. The attraction here is if
you can get such a property in a good location at a cheap price it’s
perfectly possible to refurbish and resell on at handsome profits. Indeed
there are individuals and organisations that make their living doing
this. Derelict or in derelict areas. Subject to severe disrepair. Subject to local authority notices. Subject to closing orders. Offered with ambiguous legal titles. Sold without access. Sold with major fencing, paving, drainage or other similar Sold subject to covenants or restrictions, which prevent normal use. Exceptional properties – Include ones that have historical meaning
and TYPES OF AUCTION Large composite – Tend to have over 100 lots. Expect well over
300 people to attend and the venue to be held in a large hotel or conference
centre. Large composite auctions are likely to be run by a single auction
house. The type of property may be restricted to just one (e.g. vacant
possession houses, factories, warehouses etc) or may be a mixture Medium composite – Have between 5 to 100 lots and will typically attract between 200 to 500 people, most likely in a hotel or conference centre. It’s similar to a large composite, only on a smaller scale. Small composite – Offer between 2 to 5 lots and will attract
upto 5 bidders. The likely venue is likely to be somewhere like a pub,
restaurant, church or small hotel. Small auctions will generally follow
a theme – for example the properties involved may have been part
of a bigger group (such as a portfolio of properties owned by one company) IDENTIFYING AUCTIONS Auctions aren’t as easy to find as you might expect. Traditionally
auctioneers get more than enough interest from in-the-know regulars
so they don’t need to spend much money on costly advertising to
the public. Here’s where the list of auction houses that comes
with this guide becomes invaluable. There are details on each auction
house including Phone the auction house and ask them when their next auction is likely
to be held. Prepare a list of questions for each auction house you contact. These should include: Do you have a mailing list? How long do you keep people on your mailing lists and can you let me What type of properties do you auction? It may also be worth subscribing to certain pedigree property magazines. THE INFORMATION AN AUCTIONEER WILL PROVIDE Obviously they will provide the details of the properties going under the hammer at their auctions. These tend to be more detailed than the snippets given by estate agents (there are laws such as the Property Misdescriptions Act 1991 which make it illegal for auctioneers to give false information about a property). On the whole, for any given lot they will provide:Location Construction details Tenure (e.g. freehold) Accommodation details (e.g. 3 bedrooms etc) Notes (e.g. refurbishment required) Viewing details Solicitor details Auctioneers usually publish a catalogue with the lot details –
this is a book detailing the various properties available at auction.
These will usually be available a month or less prior to the auction
date.
Find 30,000 Dirt Cheap UK Properties At Auction Immediately: Subscribe to the Online Powerpack newsletter & discover the biggest About the Author
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