Striking Bargains At A Property Auction
- Date: 2008-06-30 - Word Count: 458
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As the skies over the housing market in the UK grow darker, more and more aspiring homeowners are looking for an element of hope. With the asking prices taking a tumble and sellers becoming more anxious to get their properties off their hands, homeowners have found a silver lining. It turns out that a falling property market has some benefits after all.
While the gloom may have spread since experts predicted house prices to decline further, bargains are beginning to surface. Several of the best deals are found at auctions. If you are aiming to become a landlord or if you are interested in buying unique properties, then you can check out the wide selection offered at auction houses. Auction experts state that buyers can get between £10,000 and £20,000 off a typical three-bedroom house. Some stressed vendors have also been reported to accept extremely low offers. Some of them have even reduced their asking prices by as much as 44 per cent in return for a quick sale.
The slide in the market has even led to the comeback of gazundering, where buyers ask for discounts off an agreed purchase only days prior to the exchange of contracts.
Homeowners who are considering a move to bigger properties also stand to benefit from the gloomy property market. While it is possible that they may have to settle for a lower bid on their home, they can, however, make lower offers on the properties they have set their eyes on. If they want to strike a good deal, they can opt to pay cash or have a mortgage prepared.
Those who are considering buying at a property auction may want to prepare for the experience. Buyers should:
Do a run through. Look for a property you are interested in but are not planning to buy. Schedule a viewing, then come up with an estimate on its potential price, and pay no attention to the guide price. Afterward, proceed to the auction and visualize yourself bidding for it.
Don't ignore the importance of a survey. Aside from making sure to look out for unpleasant agreements, you also need to be certain that the property can be mortgaged. This is especially important if you are planning to seek finance.
Organize finances. If you have made the decision to buy at an auction house, be sure that your finances are in order. You normally have 28 days after the auction date to finalize the purchase. As this varies from auction house to auction house, you are advised to check in advance.
Even if the market continues to struggle in the near term, those investors who decide to buy today and hold for even a minimum of five years are most likely to make a substantial profit.
While the gloom may have spread since experts predicted house prices to decline further, bargains are beginning to surface. Several of the best deals are found at auctions. If you are aiming to become a landlord or if you are interested in buying unique properties, then you can check out the wide selection offered at auction houses. Auction experts state that buyers can get between £10,000 and £20,000 off a typical three-bedroom house. Some stressed vendors have also been reported to accept extremely low offers. Some of them have even reduced their asking prices by as much as 44 per cent in return for a quick sale.
The slide in the market has even led to the comeback of gazundering, where buyers ask for discounts off an agreed purchase only days prior to the exchange of contracts.
Homeowners who are considering a move to bigger properties also stand to benefit from the gloomy property market. While it is possible that they may have to settle for a lower bid on their home, they can, however, make lower offers on the properties they have set their eyes on. If they want to strike a good deal, they can opt to pay cash or have a mortgage prepared.
Those who are considering buying at a property auction may want to prepare for the experience. Buyers should:
Do a run through. Look for a property you are interested in but are not planning to buy. Schedule a viewing, then come up with an estimate on its potential price, and pay no attention to the guide price. Afterward, proceed to the auction and visualize yourself bidding for it.
Don't ignore the importance of a survey. Aside from making sure to look out for unpleasant agreements, you also need to be certain that the property can be mortgaged. This is especially important if you are planning to seek finance.
Organize finances. If you have made the decision to buy at an auction house, be sure that your finances are in order. You normally have 28 days after the auction date to finalize the purchase. As this varies from auction house to auction house, you are advised to check in advance.
Even if the market continues to struggle in the near term, those investors who decide to buy today and hold for even a minimum of five years are most likely to make a substantial profit.
Related Tags: finances, profit, uk, bargains, property auction, homeowners, auction houses, bigger properties
Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - www.Property-System.com Your Article Search Directory : Find in Articles
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