Ideally, there are many conventional ways of owning land or housing property in the UK. However, auctioning has remained one of the main cost and time-saving means to date. Perhaps the most obvious reason why people still prefer auction is because you don’t have to worry about paying above the words. This is because all bidders are aware of the bid range. Moreover, an auction takes as little as three minutes, and you will be smiling all the way home with your property.
There is definitely a little more to the whole process than that but auctioning is relatively transparent and a lot simpler. Comparatively, the conventional method of selling of property in the UK engages a process in which every client must simultaneously go for the property without cold feet. In 2016 alone, more than 30,000 home property was sold through auction in the country. This equates to £3.5 billion worth of sales which recorded a 4% increase compared to the total sales in the previous year. According to the experts at Experienceinvest, these figures could be easily surpassed this year.
How auction firms are reaping huge benefits
Roger Lake of the UK’s Auction House affirms that auction was one of the leading resisting property sectors to the aftermath of the Brexit referendum. Moreover, it is has become apparent that auction is the go-to place for property sale unlike back then when it was viewed as the last resort.
Already auction firms are recording reasonable increases in the first quarter of 2017 compared to the same quarter last year. Savill, another auction company, has recorded an 18.39% increase in 2017, 1st quarter.
Another company that has made it home and dry from auction is Clive Emson. During this year’s auction events held in March throughout the country, Emson recorded sales worth £ 20 million. There are many other examples of auction and real estate firms which have reaped enormous benefits through auction and are already registering massive profits in the first quarter of 2017.
As a buyer, especially those engaged in buy-to-let, you will find it highly profitable and convenient to use auctions. This is not only because auctions are simple but also due to the fact that you have a chance to bag a substantial bargain. Statistics carried out by Experienceinvest suggests that buy-to-let investors prefer buying property that needs minimal repairs. This is why it would be a good idea to purchase such property through ab auction. According to Stacks Property Search owner Rachael Johnson, most vendors would prefer an auction because they have confidence that there is a huge interest to be enjoyed if the property requires renovation or rebuilding. However, you will be surprised to find that auctions could include some finely finished apartments among other property and not just a bunch of wrecks.
In an auction, your rival bidders will comprise of a vast and varied group. Among them are buy-to-let landlords, first-time buyers, and developers ranging from amateurs to professionals. First-time buyers will be looking for a home to renovate by spending very little. The cost of construction is huge in this country compared to a simple renovation. So this is a deal most people would die for. Landlords, on the other hand, will be in for a big swoop that would improve their purchases while at the same time knowing they will have the property ready for renting very soon. Developers know that they will only need to refurbish the property and resell it at a maximum profit within a very short period.
The trick with most auctions is that you must do your homework very well. With most auctions, you should first check the online catalogue prior to the event. You can hire the services of a solicitor who is well acquainted with the auctions. And finally, before you go to the auction, make sure you download the legal pack and get a survey of the property you would like to purchase. Equipped with all this information, you are now ready to get your first property through an auction. I am positive you will find it a lucrative mechanism to purchase property especially here in the UK.