Things to Expect when Buying at a Property Auction
Property markets can be quite intimidating for first-timers. However, one of the most effective ways that buyers can beat the competition these days would be through purchasing at auctions.
More and more first time home buyers these days are flocking to instead of the usual channels when buying a property. Buying at a property auction is deemed a good means to acquire the types of property that you would otherwise not have the chance to actually afford.
There are a lot of misconceptions about buying properties at auctions. Most of the time, these misconceptions have led many people to turn the other way thinking that the whole process is only going to intimidate and overwhelm them more. See Also: Real Estate Passive Income
There is also the myth that properties being sold at auctions tend to have problems. This could not be farther from the truth. One of the reasons why auctions have become a favourite place for many vendors to go to these days is because they just want the assurance that putting their properties in an auction will allow them to receive the money for the sale in their bank accounts within the next seven weeks.
What auctions do is take away the uncertainty that sellers and buyers often have to face, especially in property markets that are quite frenzied. There are a lot of buyers who are quite dissatisfied with the tactics that property agents tend to employ. Getting a property off an auction allows for a shortcut of the usual long process involved when buying a new property.
Properties end up in an auction when home-owners haven’t paid their mortgage for a number of months. This is when banks will file a default notice. If the home-owner fails to pay the balance or renegotiate the loan, then the property can then be put up for auction.
It is also possible for properties to end up in an auction if the property taxes were not diligently paid by the owner. If the property becomes delinquent on income taxes then it is likely to suffer the same fate too. However, there are many instances when home-owners just choose to sell their properties through this venue because it is faster.
If you decide to buy at an auction, you must first make sure that you have understood the conditions and particulars of the sale. You must also be in a position to bid for figures on an unconditional basis, in which case, you need your bank to pre-approve your mortgage. Most importantly, bid only up to a price that you know you can afford to pay and be ready to pay for the 10% deposit fee as well as sign the contract by the end of the auction.
Property auctions are great venues for people to buy interesting properties that they would otherwise not have any access to. Check out more information about property auctions by reading Richard Butler Creagh online.