Four reasons why you should buy a property at auction

Four reasons why you should buy a property at auction 

The auction market, which was set up better than most to deal with the sudden transition to online-only thanks to this service is in place for many auction houses pre-pandemic, was able to carry on functioning strongly even during the height of lockdown. 

In the event of further local or even national lockdowns – more likely again as cases increase rapidly and restrictions tighten across the UK – the auction market will once again be in a strong position to thrive. 

That’s because people and auction houses have got used to online auctions – live-streamed and interactive, but held remotely – and there has been no huge rush to return to traditional in-room events. 

The main advantage of online auctions is the reach they can garner, with people bidding from all over the country. The process is also transparent and immediate, which is particularly attractive to buyers, sellers and investors at this time of continued great uncertainty.  

Below, we outline four reasons why purchasers should consider buying at auction. 

A fast and secure transaction 

If you are looking to buy fast, there are few better ways than doing it through auction. Transparency is there as a sale is agreed on the fall of the hammer, with all deposits and necessary documents exchanged on the same day.  

At the same time, you need to make sure your finances are in order – and if you’re buying with a mortgage, that your mortgage is all set up and ready to go – before you start making any bids. Remember, you will be legally tied in at the fall of the gavel and backing outcomes with serious costs attached. 

Most of the properties available come with no onward chain, too, which makes the whole process that much quicker. One of the biggest frustrations for buyers is chains falling through or sales dragging on, but this is much less of an issue when buying at auction. 

A nationwide span 

At the auction, properties aren’t limited by geography or region. As such, it makes it easier for buyers – or buy-to-let investors – to snap up bargains in parts of the country that are more affordable. Most of these properties are keenly priced and readily available. 

If you are being frustrated by the shortage of options in your local area and seeking a fast, transparent sale, auction might just be the best route for you. 

A chance to research 

Buying at auction doesn’t mean buying blind – quite the opposite. Because the auction environment encourages quick sales and acting on instinct, it’s vital that you do your research beforehand and familiarise yourself with the lots on offer at the auction you’re attending (virtually for the moment). 

Don’t be drawn into making bids by the excitement of the occasion. Read up on the properties and get to grips with any legal documents on offer (nearly all lots will come with a legal pack attached). If you are particularly interested in a property, you may want to visit it beforehand (in fact, this is actively encouraged), but because of Covid restrictions, you will need to work with the auction house and the sellers to ensure this is possible and carried out in a Covid-compliant way. 

Luckily, at the auction itself, the process of bidding couldn’t be easier, but it’s important that you know what you’re getting into. 

An uncomplicated process 

If you’re looking for ease and speed, buying at auction can provide that – particularly when buying online. 

As this document outlines, it’s a simple four-step process to placing a bid on your desired property when doing so through an online auction.  

At present, because of COVID restrictions, many auction houses are running live stream auctions to replace the in-house experience. Here at Pattinsons, we are running a North East Live Stream on October 28 and a North-West Live Auction Stream on December 21. 

Bidders can place bids beforehand, by proxy, or compete with other bidders on the day in a remote version of the usual in-person experience.