Reasons to Attend a Government Property Auction for Prospective UK Buyers
Buying property at a government property auction in the UK can be highly profitable while remaining cost effective for the winning bidder. In less than 5 minutes, buyers can become real estate owners. Buying property at an auction isn’t hard to do; yet, many people are reluctant to participate in government property auctions. Here are the three main reasons why people shy away from real estate auctions and additional information about why they shouldn’t.
Reason #1 – Buyer Apprehension
Some prospective buyers are afraid to attend events like a government properties auction because they are unfamiliar with auction policies and procedures. In fact, many people prefer to use real estate agents and pay the associated commissions and fees rather than buy property on their own via an auction. In England and Wales, approximately 2.5% of all properties are sold at an auction and a high percentage of these are sold at government sponsored auctions. If you’d like to attend an auction that’s sponsored by the government, a bit of research and reading on the Internet will put your mind at ease. It’s a great opportunity to pick up a bargain or “diamond in the rough” or “do-up” property that can be refurbished and sold for a considerable profit.
Reason #2 – Competitive Bidding and Buyer Uncertainty about Price
Some potential buyers at a repossessed property auction, for example, might feel that they could be “taken advantage of” in the bidding process by others who may bid against them simply to drive up the price of the property for the seller. The key to successful bidding is knowledge. If the bidders at a government seized property auction know that a property is valuable, then spirited competitive bidding is definitely possible. Although this process often benefits the seller, a well-informed buyer still can find a bargain. So, do some research before you attend an auction. Since catalogs are often published before the auction, there’s no excuse not to be informed before your arrive to bid. Set a budget as well. If, in the bidding process, the bid exceeds your budget, it’s a simple matter to stop bidding.
Reason #3 – Speed, Marketing and Chance for Success
The traditional process of buying property is long and drawn out and fraught with pitfalls. Buyers seeking more time-efficient transactions can generally find them at a property auction. Real estate like repossessed property that’s going to be auctioned is usually advertised in the newspapers and may even be featured on Internet web sites. In fact, the auction may even occur on the Internet. This keeps costs down, a fact that benefits buyer and seller alike. Some Internet auction sites claim that they’re able to sell over 90% of the properties listed with them.
There are some pitfalls to avoid when bidding at a government seized property auction. First, there’s no backing out of a sale. Winning bidders are legally bound to complete the transaction. Second, there’s no opportunity for renegotiation, meaning that if the buyer discovers problems with the property after the sale, he has no recourse to ask for a refund or reduction in purchase price. Nevertheless, there are many bargains to be had at a government property auction in the UK for circumspect and savvy buyers.