How to Buy Bargain Property at Auction
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
How to Purchase Bargain Property at Auction
Do you want to invest in a profitable property or buy a new home at a bargain price? If so, consider exploring property auctions.
Properties sold at auction often come from mortgage lenders after repossessions, former council or housing association homes, or estates left vacant after the owner's passing. These scenarios often lead to quick sales, offering potential deals below market value.
Finding an Auction
Property auctions typically cater more to industry professionals than the general public, so they're not always widely advertised. To find auctions, start by checking online directories or conducting searches on Google or Yahoo.
Additionally, keep an eye out for "For Sale by Auction" signs. Contact the number listed to connect with the estate agent or auction house directly. If you reach an agent, request the auction house's contact details. Agents may be hesitant, so persistence is key.
Once connected with an auction house, request to be added to their mailing list?"even if there’s a fee?"to receive updates on upcoming properties.
Before You Bid
Once you've identified a property of interest, arrange your financing beforehand. Most people will approach a mortgage lender, and this should be done before the auction date.
Remember, winning a bid legally binds you to purchase the property, typically requiring payment within a set timeframe. Mortgage lenders will need a basic property valuation, but investing in a full survey is wise to uncover any potential structural problems.
Before making a bid, attend a few auctions to familiarize yourself with the process.
Winning Your Bid
Set a price limit and stick to it, avoiding the temptation to overbid. Having a prior valuation will give you a clear understanding of the property's market value, helping you stay within the amount approved by your mortgage lender.
If your bid is successful, you’re required to place a deposit of 10% of the selling price. You'll sign a contract already reviewed before the auction, with the seller legally bound to finalize the sale that day.
The remaining balance must be paid within an agreed period, typically around 28 days. Congratulations on securing a property at auction!
You can find the original non-AI version of this article here: How to Buy Bargain Property at Auction.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.