Particulars you need to know about property auctions Property auctions have been steadily gaining in popularity as many feel it as an effective and convenient way to buy and/or sell property. Successful bidding on a property of your choice and sealing the transaction can be done in less than 20 minutes – as compared to conventional methods where a sale can mean protracted negotiations and several weeks to conclude. The chief attraction of buying at property auction is that you can buy the property at far below the prevailing market rates. It is reported that properties at auction can be bought at nearly 30 to 40 percent cheaper and the transaction takes place without much hassles. In fact properties at auction can be purchased, contracts exchanged, completed and paid for in full within 28 days. The types of properties sold at an auction are predominantly Repossessions, Private Sale, Government & Local Authority and Commercial.
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Repossessed properties are invariably those arising out of mortgage arrears. The money lender under these circumstances will evict the house owner and take possession of the property. Private sales are the ones that constitute bulk of auction hall transactions. Individual owners wishing to sell their property quickly opt for property auctions. The fondly expect a possible bidding frenzy to fetch them maximum sale price. Government and Local Authorities quite often offer properties for sale through auction houses. It is their intention to selloff old and worn out properties to reinvest in modern buildings. Commercial properties are sold in abundance at auctions. This is principally due to company relocation, downsizing or lease holders selling up. This is a good form of investment with steady yields – if you can buy one below market value.
If you are planning to buy property at an auction, you may search on the website to see if there are any properties of interest and the venue and date of the auction. All sales are subject to the General and Special Conditions of Sale which can be viewed on this site. You can access legal documents for each property up to 10 days before the auction.
Details of property viewing facilities are invariably outlined in the catalogue. It is absolutely necessary that you inspect the properties before bidding at an auction. This will help you know the extent of repair/renovation costs and you can bear that in mind while bidding. There are three different buyers at the property auction • • •
Those who wish to buy and then rent out the property Those who buy and renovate and then sell the property at a profit. Those who buy to own and want to live there.
If you are interested in bidding at a property auctions you must provide the prescribed forms of identification – without this, you may not be able to bid at many auctions. Successful bidders will be required to provide proof of identity and proof of current residential address by producing the relevant documents prior to signing the contract at the auction. The fall of the hammer at the final acceptable bid constitutes a binding contract and the purchaser is required to pay 10% of the purchase price. You must carry a personal check book to the auction hall to pay for the initial 10 percent deposit if you become the successful bidder. You should also ensure that your bank account has the requisite credit balance. Completion of the sale and payment of the balance of the purchase money happens in four weeks unless the conditions of sale provide otherwise. If you back out after successfully bidding at a property auction, you will forfeit your 10% deposit along with any other fees that the auctioneer may wish to impose.
For more information’s visit our site: http://www.propertyauctionzone.com/ .