Why buy property at auction?

If you’re new to the auction world, you might be wondering why it's such a popular way to invest in property.

It isn’t just about picking up a bargain – it brings with it a whole raft of other benefits:

There's a range of properties

At auction, the range of lots is hugely varied – and introduces some property you're unlikely to see in an estate agent's window.

 Some of the properties you may see being sold at auction include:

  • Those deemed ‘unmortgageable’ by some mortgage providers, because of their condition, construction materials, or similar issues.
  • 'Uninhabitable' properties (e.g. those lacking kitchens or bathrooms, or in 'shell' condition).
  • Properties with sitting tenants.
  • Conversion opportunities.
  • Those that could be split into several, smaller units.
  • Commercial property.
  • Mixed-use properties (e.g. flats above retail units, where the whole building is for sale).
  • Land.

You’re competing only with other auction-goers

Thousands of people browse estate agents' property listings online via sites like Zoopla or RightMove, which can put you up against countless other potential buyers. And this could make securing a sought-after property, at the right price, very tricky.

At auction, you’re bidding just against those in the room or on the telephone who might be interested in the same property. And you know very quickly how much you’ll have to pay to make it yours – no more putting in an offer and hoping for the best.

No protracted negotiations

When the hammer falls, the contract between the winning bidder and the vendor is legally binding. There’s no waiting around for the vendor to consider an offer, and no stressful negotiations, so you can get on with completing the transaction.

The purchase completes very quickly

If you’ve bought property the conventional way, you’ll know how the process can be a long-winded one – especially if there's a chain involved. But when you buy at auction, you'll have 28 days – at most – to complete the sale.

While this is far faster than most mortgage applications can be processed, it's why our experience in financing auction purchases may come in handy.