Grab Your Dream UK Home On The Cheap - Property Auctions

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 by: Tukshad Engineer

Did you know that every year thousands of UK properties
are sold at significantly below market value? The majority of these
properties are released through property auctions where regular savings
of between 10% to 40% are available to market value. Even so, property
auctions continue to be used only by the elite and for the astute
buyer/investor this generates a fantastic opportunity to secure a dream
home/good investment at bargain basement prices.

For example, at a recent auction a studio flat was sold
in London for a mere £9,000. In another, a 2 bed flat right on the
south coast with a market value of upto £100,000 sold for just £14,000
at auction. And those are just a couple of examples of the bargains
that people do find at property auctions. However it's also important
to know the potential issues and problems when dealing with auctions
and to understand exactly where the best deals are available. If you're
interested in getting into the world of property auctions the below
tips & tricks of the trade should be very helpful.

TYPES OF PROPERTIES FOUND AT AUCTIONS

UK Property Auctions Home Contact

The following is a guide to help anyone unlock the value
available through UK Property Auctions. Thousands of homes are
available at any given time with property auctions, most of which are
sold at prices far below market value. However it's important to know
the potential issues and problems when dealing with auctions and to
understand where the biggest bargains are available. Details of
thousands of cheap, repossessed & auction properties are also
available at Property Auction Bargains.

Its perfectly reasonable to expect to pay between 15% to
40% less for a property at auction than you would for the same property
through an estate agent. For example, at a recent auction a studio flat
was sold in London for a mere £9,000. In another, a 2 bed flat right on
the south coast with a market value of upto £100,000 sold for just
£14,000 at auction. And those are just a couple of examples of the many
bargains that people find at property auctions each and every week.

TYPES OF PROPERTIES FOUND AT AUCTIONS

Repossessions – Sadly for the previous owners, repossessions can often be picked up at bargain prices through auctions.

Investment properties – Properties, which are valued due
to the return on investment that they provide. Includes everything from
individual office/shop investments to blocks of flats.

Rundown properties – Auctions are great places to pickup
properties that are unsaleable in their current state. The attraction
here is if you can get such a property in a good location at a cheap
price it’s perfectly possible to refurbish and resell on at handsome
profits. Indeed there are individuals and organisations that make their
living doing this. Unsaleable properties come under the following
categories:

Derelict or in derelict areas.

Subject to severe disrepair.

Subject to local authority notices.

Subject to closing orders.

Offered with ambiguous legal titles.

Sold without access.

Sold with major fencing, paving, drainage or other similar responsibilities.

Sold subject to covenants or restrictions, which prevent normal use.

Exceptional properties – Include ones that have
historical meaning and plots which ‘get in the way’ of major
development projects.

TYPES OF AUCTION

Large composite – Tend to have over 100 lots. Expect well
over 300 people to attend and the venue to be held in a large hotel or
conference centre. Large composite auctions are likely to be run by a
single auction house. The type of property may be restricted to just
one (e.g. vacant possession houses, factories, warehouses etc) or may
be a mixture of different types.

Medium composite – Have between 5 to 100 lots and will
typically attract between 200 to 500 people, most likely in a hotel or
conference centre. It’s similar to a large composite, only on a smaller
scale.

Small composite – Offer between 2 to 5 lots and will
attract upto 5 bidders. The likely venue is likely to be somewhere like
a pub, restaurant, church or small hotel. Small auctions will generally
follow a theme – for example the properties involved may have been part
of a bigger group (such as a portfolio of properties owned by one
company) who believe the best returns will be obtained by offering the
properties for sale individually.

Single lot – usually for a property that is in great demand.

IDENTIFYING AUCTIONS

Auctions aren’t as easy to find as you might expect.
Traditionally auctioneers get more than enough interest from
in-the-know regulars so they don’t need to spend much money on costly
advertising to the public. Here’s where the list of auction houses that
comes with this guide becomes invaluable. There are details on each
auction house including which area the auction house covers. Go through
the list and identify ones, which cover the areas you are interested
in. Then:

Phone the auction house and ask them when their next
auction is likely to be held. Ask them to put you on a mailing list,
which details forthcoming auctions. Some may charge a small fee for
this, others offer the service for free.

Prepare a list of questions for each auction house you contact. These should include:

Do you have a mailing list?

How long do you keep people on your mailing lists and can you let me know if I am about to be removed?

What type of properties do you auction?

It may also be worth subscribing to certain pedigree
property magazines. These include Property Auction News, Under The
Hammer and Property Week. Local newsagents usually carry these.

THE INFORMATION AN AUCTIONEER WILL PROVIDE

Obviously they will provide the details of the properties
going under the hammer at their auctions. These tend to be more
detailed than the snippets given by estate agents (there are laws such
as the Property Misdescriptions Act 1991 which make it illegal for
auctioneers to give false information about a property). On the whole,
for any given lot they will provide:

Location

Construction details

Tenure (e.g. freehold)

Accommodation details (e.g. 3 bedrooms etc)

Notes (e.g. refurbishment required)

Viewing details

Solicitor details

Auctioneers usually publish a catalogue with the lot
details – this is a book detailing the various properties available at
auction. These will usually be available a month or less prior to the
auction date.

IDENTIFYING REPOSSESSIONS

Some banks/building societies can be sheepish about
revealing that they are selling repossessed properties so you need to
be alert in the auction for clues. Auction adverts may reveal that a
bank may be the seller of a number of properties, or the auction
catalogue may state a phrase such as ‘on instruction of a liquidator’
or something similar – this should tell you that the property being
sold is a repossession. If you are unsure, ask the auctioneer directly
if the lot being offered is a repossession.

FINDING PROPERTY AUCTIONS NEAR YOU

There are several thousands of properties available for
auction at any given time all over the UK. It's important to understand
how auctions work before purchasing a property from one. To find out
where you can get hold of a list of UK property auction venues and
websites of auction properties for sale take a look at my resource box
below. I wish you every success in finding your dream bargain home at
auction

About the Author

Find 30,000 Dirt Cheap UK Properties At Auction Immediately: http://www.global-ebooks.com/Property_Auction_Bargains.htm

Subscribe to the Online Powerpack newsletter & discover the biggest discounts available anywhere for just about everything! Send an email to tukshad@global-ebooks.com

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