7 Things You Don’t Know About Property Auctions (You won’t believe number 7)
Posted by Connect UK Auctions on 6th May 2020 -
1) You don’t NEED to be a cash buyer.
Many believe that clients with only ‘deep pockets,’ can buy at auction, which couldn’t be further from the truth. Auction Finance Experts, are on-hand before, during, and after the auction to help you turn the funds around, in any given timeframe.
2) Completion dates and timeframe CAN be adjusted to meet your timeframe.
On the fall of the Gavel, completion is generally 28 days thereafter unless specified. Completion can be set at 42 days (6 weeks) from exchange or in fact, anywhere in between. As long as all parties are notified, your timeframe is paramount.
3) Private market sales are increasingly popular in the auction room.
Auctions have been around for an extremely long time. It is generally perceived, lots come from banks, building societies and local councils however this is not just the case. Clients in the private sector have learnt the huge benefits of selling via auction and are realising this method proves to be in their best interest. Auction offers security. On the fall of the gavel paperwork is then signed and exchange of contracts will take place at the agreed price, so there is no renegotiating or gazundering.
4) You CAN buy with a high street mortgage
– Not only bridging loans. Auction offers immense opportunity and allows one to buy, through some lenders, with only a 15% deposit.
5) A Pre-Auction Legal Pack, contains all the information you and your solicitor require.
Apart from the difference of a legal pack being prepared prior to exchange the information gathered and presented is that of the same as a private treaty, high street sale.
Once the gavel falls, if you are the highest bidder, you are legally bound as the buyer and contracts are exchanged. Just a 5% deposit is payable with the remaining 95% due upon completion.
6) Viewings ARE welcome prior to the auction.
Believe it or not, many people believe that auction properties are bought without being viewed. Viewings are most welcome and in fact are highly recommended before attending the auction room to bid.
7) Contrary to popular belief, properties that sell at auction, often achieve a higher price, than previously agreed when sold subject to contract, through the local estate agents.
Competition is good; gathering all potential purchasers together, in the same place at the same time, creating a sense of urgency and wanting. Rest assured the price achieved is the best you could possibly obtain. It is impossible to undersell in the room!