What are the benefits of buying property at auction?

When weighing up the best route into property ownership, property auctions aren’t typically the first thing to spring to mind. House hunters are most likely to go down the mainstream route of high-street estate agents or online equivalents but that doesn’t mean that they are the most beneficial option. Property auctions offer a lot of positive factors, not least the opportunity of bagging a real bargain! Stick with us as we explore all of the benefits and maybe you’ll be watching the hammer drop on your next property investment.

Get a bargain at auction

Property auctions offer an opportunistic setting in which to bag a bargain. At auction, you have the chance of making a winning bid that is lower than you might have planned on, and far lower than if subjected to a traditional closed bidding system.

As long as you meet the reserve price and stay a bid ahead of your competitors, you could be walking out of the auction house with money left in your pocket.

Photo by Sora Shimazaki

Chain-free property with early completion

Property chains can become a nightmare if individuals drop out or solicitors drag their feet. At auction, the property is yours within 28 days of the gavel landing. There is no possibility of gazumping or the deal falling through due to other parties.

With no uncertainty on timescale, you have a clear window in which to carry out any necessary inspections or paperwork whilst marching toward the completion date. Searches, title deeds, leases, and sometimes planning permission are supplied prior to the auction.

Image by Nile from Pixabay

Get better returns

Many auction properties come with great opportunities for adding value through interior improvement, extensions, or possibly change-of-use. These changes can bring about either resale profits or higher rents.

Investors who are looking specifically for buy-to-let properties can often find tenanted stock. On the legal completion day, the tenancy agreement will be passed over to generate an immediate rental income.

Image by Shutterbug75 from Pixabay

Why not check out our PAA auction directory to find the next property auction near you?

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