The modern world is a competitive one. We compete for jobs in a market that continues to become more ruthless. We compete to win contests in singing, dancing, drawing, gaming, running, driving, spelling, texting, eating, and cheese-rolling. Of course, we should place certain limits on competitions. We ought to ensure that we follow all the rules, and demonstrate good sportsmanship. Nevertheless, competition breeds excellence. The need to compete helps to fulfill our natural need to achieve.
Similarly, the UK financial world provides an outstanding means of competing. Like a rugby or football match, we need to maintain an edge over the competition, in order to win. The UK property auction remains one of the most competitive events within the financial market. In a flurry of action, you can secure the home of your dreams, or lose it by the slimmest differentials in offers. By avoiding these mistakes, you can maximize your chance of winning the home of your dreams:
1. Never disregard the benefits of buying a property through property auctions
While estate agents sell roughly 90% of all properties in the UK, more and more Britons are choosing to sell their homes through property auctions. Mortgage lenders often sell properties at auctions that they have repossessed due to customers defaulting on their loans. Other properties at property auctions are challenging to sell, or have prospects for development. The homes at the auctions oftentimes feature reduced prices, giving you the opportunity to save amounts up to 40%, at property auctions.
2. Never limit your search for auction houses, to phone directories
How can you locate auction houses? You could start with a local phone directory. You may find numerous auction houses that way. However, many of them may deal with antiques, art, etc. Furthermore, keep in mind that auction houses located in one particular region of the UK, might be selling properties that are located in a different area of the UK. The bottom line is that a local phone directory can be a valid source for locating auction houses, but it should not be THE source.
In fact, it is advisable to take a less direct approach, when searching for properties that you can buy at auctions. Whenever you spot a “For Sale” sign in front of properties, look for those that include the word “Auction” on them. Contact the auctioneer and then request a catalogue.
3. Never hesitate to secure the property you want
From the date that an auction house publishes its latest catalogue, until the next of the property sales auctions, the window of opportunity is frequently only between 3-4 weeks. In other words, every day counts. Thus, if you spot a property for sale by auction, it is important to act action immediately, to maximize your chance of securing the auction. It is possible to purchase a home via an auction quickly, and it does not require you to be a professional in the residential property business. However, the key is to act as quickly as possible.
4. Never disregard structural problems
If you discover structure damage to the home you will be bidding on, in either the evaluation or the surveytake note! It is important that you factor in the damage, when bidding. You may even decide not to bid on the property, if the damage seems too severe and costly. On the other hand, if you decide to continue with your quest and win the bidding at the auction, then you should hire a trained professional to complete the necessary work, afterwards.
5. Never purchase a property prior to selling yours
When vying for property auctions houses, the assumption here is that you will use the funds from the sale of your house, to purchase a different property at an auction. Selling your home beforehand involves part of the financial preparation for making a winning bid.
6. Never fail to set a price limit on the property you will bid on
One situation you certainly want to avoid in an auction, is bidding more than you have budgeted for the event. Furthermore, if you have done your homework prior to the auction, then you will know precisely how much the property is actually worth. Thus, it is highly advisable that you set a bidding limit on yourself. Some experts argue that you could bid SLIGHTLY higher than the limit you set. However, it is important that you do not go overboard and significantly pass your limit, in the thrill of bidding.
7. Never let anxiety prevent you from bidding
Are you uneasy around crowds? Do you have a fear of public speaking? For various reasons, to may feel uneasy about bidding in person during an auction. That is okay. One could certainly argue that participating in an auction is less traumatic as the environment that filmmakers often portray. Here is another of the tips for buying at auction: you could have your surveyor or solicitor to conduct your bidding. A few options include standing alongside them or even waiting at home for them to contact you about the outcome of the auction.
8. Never fail to consider the drawbacks of property auctions
As with any other type of good or service related to finance, property auctions include some pitfalls. First, you will need to handle the following matters before the auction:
conveyancing
mortgage
survey
valuation
These services can cost hundreds of pounds, so you should ensure that you have enough savings to cover the various expenses. Furthermore, keep in mind that you could still lose the auction. In that case, you must decide whether you want to try securing another home via a property auction.
A property auction mirrors the competitive nature of a game of cricket, and the stock market. Before you deal with property auctions agents and make your first bid for a UK residential property, do your homework. Knowing how to avoid mistakes will help you to smile after the auctioneer’s gavel hits the sound block.
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