Is It A Good Idea To Buy On Auction?
We discuss what a property auction is, how it works and how this form of real estate is a transparent and effective way to buy and sell property.
Are you looking for a new property? Purchasing a property on auction may be the perfect option for you.
We know what you might be thinking - auctions are only for those looking for a quick deal or for repossessed properties. Which probably leads you to question if it’s really a good idea to buy a property on auction?
Auctions are no longer what they used to be…
What is an auction?
An auction is a public sale in which property is sold to the highest bidder. This is the simplest way to describe an auction but the stigma around auctions has changed.
If you wish to purchase a property at an auction these are some factors to consider:
- Prospective buyers need to register before the auction and pay a refundable deposit
- If your bid is successful you will be required to pay a deposit which usually 10% of the purchase price as well as the sheriff’s commission on the fall of the hammer
- The balance of the purchase price must be guaranteed within 14 - 30 days
- The purchaser is responsible for outstanding rates and/or levies
- The purchaser is normally responsible for the eviction of any occupiers
These are just some of the logistics, let’s get into the advantages of purchasing a house on auction!
The benefits of auctions
There are many benefits to purchasing a house on auction:
- You may feel more at ease knowing that the bidders who lost the bid are prepared to pay almost the same amount for the property. This assures you that you haven’t overpaid for the property.
- An auction can be more convenient because it eliminates lengthy negotiation periods.
- You can be confident that the seller is certain that they want to sell, and is not just simply ‘testing the market’.
Auctions are a much simpler process than the traditional method of buying property. Purchasers know that once the highest bid is accepted there are no back and forth negotiations. Auctions are growing in popularity because you, as a buyer, know that you’re dealing with motivated sellers.
Auctions give you more control of the purchase as well as full transparency throughout the entire process. If you’re a first-time bidder and you’re not too sure how the auction process works, take a look at our article for some quality advice.
How it works
- View the property
- Partner with an AuctionInc property specialist for any advice
- Register as a qualified bidder
- When the auction begins, keep bidding until the property is yours at the price you’re happy to pay
It really is as easy as it sounds!
The magic of our auction process is that it brings the buyer and seller together in a totally transparent and time-urgent format so that real decisions can be made quickly.
If you need any other reasons as to why buying on auction is a good idea, feel free to contact us and we’ll find the best property for you!
Until next time,
The Auction Inc Team