Property Auctions
All you need to know about Property Auctions
Property Auctions - How They Work
Property auctions are an increasingly popular way for investors to add properties to their portfolio, both residential and commercial, and often for a very good price with greater potential for property.
Often properties at auction have some kind of issue that has prevented them being sold on the open market through the usual channels.
Investors turn up, with about 10% of the deposit price in their back pocket, along with the secured funding of a lender. They bid against each other and try and get a property at the best price possible.
Auction bidding can lead to "auction fever" where the buyer gets carried away and ends up spending more then they intended. Successful investors will often have looked at the lot in the viewing period before hand and made a decision as to the maximum the would pay for.
Within a few minutes of the hammer falling, the paper work will be signed and the buyer will be entered into a binding contract to purchase the property at the agreed sum. They hand over the deposit there and then. It is essential that the remaining funds are made available to the vendor within 28 days else they deposit will be forfeited and the transaction lost.