AUCTION RISK SUMMARY

Proportion

Buying a property at auction is a real risk, see our tips below to help you asses the risk of a property auction purchase:

  1. Auction can be a very risky place to invest in property, perhaps slightly less risky for the more experienced builders and seasoned developers who have been through the process, and have prior knowledge on the auction process.
  2. Always remember that checking the title prior to bidding is crucial.
  3. The title however might not reveal the true extent of latent problems.
  4. A seller is under no obligation to produce anything other than the title (showing proof of ownership), so do bear in mind that in certain cases, no additional information is provided. *
  5. In effect the vendor can then produce nothing else such as searches, property enquiry certificate, coal report etc (only home report is compulsory for residential properties, commercials are exempt from “compulsory” surveys)
  6. We have had many issues with buyers suffering dreadful problems as they have purchased in haste, seeing what they want to see and not carrying out due diligence.
  7. Remember there is no “backing out”, when you successfully bid at auction, a legally binding contract is concluded on the day (or at time of an online offer being accepted), so you (the buyer) could face possible breach of contract proceedings and consequent damages. In addition to this you will lose your ten per cent deposit, and of course the buyer`s premium you have paid to the auctioneers.

* For details on fully transparent auction companies, who will provide you with all relevant and necessary documents for the properties which they have listed for sale, please click here

USEFUL TIPS

CAVEAT EMPTOR……..When it comes to Property Auction, this is the one piece of advice you should NEVER forget.

Every property purchase of course carries a certain element of risk in some way, so if you are going to auction remember that not everything for sale is necessarily a worthwhile or potentially profitable property, while auctions can hold many great buys, and many investors or developers operate very successful property businesses on the back of dealing at auction, it`s not for everyone.

Email us with any enquiries, or to share your property auction story with us:

info@propertyauctionconsultancy.co.uk

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