Property Auction Secrets UK

Auctions are nothing new, especially on the internet but other recent years the market for UK properties being sold through the process of auction has exploded.

I doubt that you feel any different to me, but we all like a bargain and when you consider that its possible, under the right conditions, to make savings in the region of 10% - 40% on the cost of buying the house its no suprise to find that the property auction market will continue to climb.

Untill recently the market has been dominated by those with insider knowledge, you had to be part of the auction "click" to enter the world where a nod is as good as a wink. How things change, now its perfectly possible and acceptable for the average Joe bloggs punter to enter the fray and secure that dream home and at an unbeilevable price.

Recently a London studio falt went for a mere snip at £9000 and a South Coast 2 bed witha market value of £100000 went for and amazing £14000. Anactodials similar to these abound in the universe of property auctions.

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 auction 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 tradeshould be very helpful.

TYPES OF PROPERTIES FOUND AT AUCTIONS

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 southcoast with a market value of upto £100,000 sold for just £14,000 atauction. And those are just a couple of examples of the many bargains that people find at 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 pick up 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 thereare 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 similarresponsibilities.

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 conferencecentre. Large composite auctions are likely to be run by a singleauction house. The type of property may be restricted to just one (e.g.vacant possession houses, factories, warehouses etc) or may be a mixtureof different types.

Medium composite - Have between 5 to 100 lots and will typically attractbetween 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 5bidders. The likely venue is likely to be somewhere like a pub,restaurant, church or small hotel.

Small auctions will generally followa theme - for example the properties involved may have been part of abigger group (such as a portfolio of properties owned by one company)who believe the best returns will be obtained by offering the propertiesfor 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. Traditionallyauctioneers get more than enough interest from in-the-know regulars sothey 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 guidebecomes invaluable. There are details on each auction house includingwhich area the auction house covers. Go through the list and identifyones, 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 servicefor free. Prepare a list of questions for each auction house you contact. Theseshould include:Do you have a mailing list? How long do you keep people on your mailing lists and can you let meknow 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 underthe hammer at their auctions. These tend to be more detailed than thesnippets 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 detailsTenure (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 abook detailing the various properties available at auction. These willusually be available a month or less prior to the auction date.

IDENTIFYING REPOSSESSIONS

Some banks/building societies can be sheepish about revealing that theyare selling repossessed properties so you need to be alert in theauction for clues. Auction adverts may reveal that a bank may be theseller of a number of properties, or the auction catalogue may state aphrase 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 anygiven time all over the UK.

It's important to understand how auctionswork before purchasing a property from one. To find out where you canget hold of a list of UK property auction venues and websites of auctionproperties for sale take a look at my resource box below. I wish youe very success in finding your dream bargain home at bargain basement prices>