What is a property auction
Well, just like any other type of auction, it is one at which things are sold to the highest bidder except, of course, on this occasion everything that goes under the hammer is a house, or other type of property - for instance quite often there will be plots of land that go up for sale at auction.
If you are interested in this method of acquiring property but it is all new to you, then one of the best things you can do is find out about local estate agents that engage in property auctions. Get a catalogue for their next auction, and take a look at a couple of properties. This will give you some idea of the sort of lots that come up at property auction - it really can be an eclectic mix.
Next, you should actually attend an auction and see if you can get a feel for whether properties tend to go for above, below or at the guide price - this can be useful when it comes to future auctions and you might be interested in property, so you can accurately assess how good the guide prices are. They do vary from auction house to auction house, and some are quite accurate whilst others can be wildly off.
You will also get a feel for whether the people that buy lots are property investors or private individuals: it is often quite easy to spot those who have a portfolio of properties, and if there are trends and patterns in the sorts of lot they go for, then consider why this is and if there are any tips you can pick up: they often go for properties that can result in a high yield rather than to do up and sell on at a profit.
Your own motivation, of course, is also important: are you buying to live in, to do up and sell on, or to do up and rent out, to provide some sort of equivalent to a pension whereby you know you will get a steady income whilst the house is let for the duration of time that you have it.
Now that you know what a property auction is, what should you do before you go to a property auction with an intention of actually placing a bid for a certain lot, or lots? Our next article takes you through the process of attending an auction.
More property related articles:
- Buying a house with friends
- Letting Property: Furnished or Unfurnished?
- Current account mortgages
- Reasons to Remortgage
- Making an Offer on Property
House Prices
- House prices in BN22 7
- House prices in NW1 9
- House prices in CR0 5
- House prices in PE14 7
- House prices in S6 2
