Why Buy a Property at Auction?
When you’re considering buying a house, the first thing that probably comes to mind is browsing online and having a chat with a local estate agent. And this method is great for most people, it gives you access to lots of different properties meaning it’s simple to find your dream home. However, if you’re an investor looking for bargains, or you don’t mind purchasing a property that needs a lot of work doing to it then why not swing by an auction? Here are just a few of the reasons to do so.
There are Unique and Interesting Properties
There are lots of reasons properties go on auction, but most of the time it’s because they’re a little more unusual or in need of a fair bit of work that won’t appeal for buyers searching on conventional sites. As a property investor, you’ll know that a run-down property makes an excellent project, and if you have access to a great team of tradesmen and good knowledge of the property market then this is a fantastic way to make big profits. In some cases, properties will need to be stripped back to the bare bones and given a full renovation. In other cases, the work will be more cosmetic, although, in just about every case, new wiring, new windows and doors, new kitchen and bathrooms and a change of layout will be needed. How much you spend and how high spec you make the finished thing will depend on the area, the kind of buyers you’re likely to get for that kind of home and any ceiling prices.
You Get The Keys More Quickly
In most cases, buying a house is a lengthy process. However, if you buy at auction you’ll have the keys in your hand in a matter of weeks, making it a great choice for investors looking to complete projects more quickly. In some cases, you can be on the property and make all of the relevant changes in a matter of weeks, ready to get it back on the market. Companies like Doug Hopkins real estate who promise to sell homes quickly, so you can be in and out with a big profit in the bank in a short timeframe. Ready for you to invest in your next project!
Buying property is usually a very long and tedious process. However buying at an auction is always exciting, you never know how things are going to pan out. It’s easy to get caught in a bidding war, and when you have your heart set on a property you can find yourself paying over what you planned. It’s best to have a maximum budget in mind (even if this is way over the guide price) but stick to it religiously. Since auction properties usually need a lot of work, you don’t want to run out of money and be stuck unable to finish it as you spent too much on the home itself.