Buying at auction
Finding a bargain at auction has become more difficult in recent years. If you do your research and with a bit of luck on your side, you can still make a profit from purchasing property this way. The risks can outweigh the rewards so you need to follow certain rules and stick to them to help mitigate the risks.
Properties sold at auction are those where a quick sale is required, or where getting a mortgage would be difficult, sometimes impossible.
All kinds of properties go up for sale at auction, from flats and houses to locks-ups and land. Some need total refurbishment, and often properties for sale at auction are being off-loaded by councils and housing associations. You will also find bed-sits that could be turned back into a house, or hotels in need of refurbishment. The opportunities are endless and it’s really a case of knowing what you want and how much you are prepared to pay.
Developers and builders often make up the numbers at auctions, as they are looking to renovate and sell on for profit.