Auction Property – How To Find Them

The purchase of auctions property is one of the most common methods used by landlords to expand their property portfolios, and due to the harsh economic climate being experienced in the UK at present there are thousands of new auction properties being sold each month. Most auctions property is sold off by banks and building societies that have been forced to repossess them from owners. Other property however comes from different sources and it is the source that sometimes determines the savings you make.

Banks and building societies

The recession is unfortunately still affecting the country and as a result the number of property repossessions remains quite high. While this is devastating for home owners it is good news for buy to let landlords as good quality auctions property is continually becoming available. Buying auctions property that is being sold by a bank or building society can save you upwards of 30% on the market value, and if you are willing to spend a few weeks renovating a property this saving can climb to 40 or even 50%.

Estate agents

Occasionally repossessed property is put into the hands of an estate agent by the bank or building society that own it. This saves the bank having to sort out paperwork etc. and it gives the estate agent an opportunity to sell the property in the normal way before resorting to an auction. Normally it is the high quality properties that are sold in this way, and so you should expect to pay more than the guide price if they actually become an auctions property. 

Inheritance estates

It isn’t unusual for auctions property to be sold by, or on behalf of, the inheritor of a deceased person’s estate. Property from an estate is often in need of modernisation and redecoration but the costs involved are easily outweighed by the savings that can be made. The guide prices of inheritance estate auction property depend on the necessity or desperateness of the new owner to sell, and it’s not unheard of to buy such properties for less than 50% of their market value.

The owners

It isn’t often than a property owner will sell their property at auction but it has been known. Owners that only have a few years to run on their mortgage but are struggling to make payments sometimes resort to selling at auction, rather than undergoing the upset of repossession. The money they make pays off their outstanding mortgage and they often have enough left to use as a deposit on another property or as rent for a few years. Either way, auctions property sold by the owner will normally be in good condition and it will save you 20-30% on the market value.

Whichever source an auctions property comes from it is guaranteed to save you money on the market value, and for this reason alone they are well worth looking into.