Common Myths About Buying Property at Auction in the UK
People often think that buying a property at auction is ‘for other people’. Reports in the media fuel myths (because myths make good news) and discourage those new to the property auction world from considering auctions as a viable way of buying property. Here we look at some of the most common myths surrounding buying property by auction:
1. The only properties sold at auction are those in need of extensive work
While it is certainly true that some properties sold at auction may be rundown or even dilapidated, there are also many for which this simply does not apply. Properties offered at auction cover a wide range, from residential to commercial to vacant land and even new builds. Buyers can often find hidden gems and unique investment opportunities that they would be less likely to find in the traditional property market.
2. Only experienced investors should buy in property auctions
Another misconception is that property auctions are only suitable for seasoned investors who are highly experienced in the property market. In reality, auctions are accessible to anyone interested in buying property. Of course, it's essential to do your research and seek professional advice, but this is the case whether buying through auction or not. Many first-time buyers successfully purchase properties at auctions.
3. Buying a property at auction is risky
There is a perception that buying property at auction is inherently risky. While it's true that auctions can be competitive this doesn't necessarily translate to more risk. In fact, auctions can offer transparency and security for buyers. All properties listed at auction come with legal documentation, and there is the opportunity to conduct due diligence before bidding. Also, the competitive nature of auctions can sometimes lead to favourable purchase prices, which can result in reduced financial exposure. Of course, this is not guaranteed.
4. You can't view properties before the auction
This is not the case. 247 Property Auctions, in common with all property auctioneers of good standing, actively encourage viewings.
5. Online auctions are high pressure
The rise of online auctions has led to the misconception that they are high-pressure environments where you must make quick decisions. Online auctions can be fast-paced, but they are also highly structured and there is usually ample time for research and consideration prior to the auction day. There is no auction room with people waving pieces of paper or nodding meaningfully. Additionally, online auctions often feature a proxy bidding system, which automatically increases your bid incrementally until your maximum limit is reached, reducing the need for constant monitoring and the potential to get swept away in the heat of the moment.
In conclusion, property auctions in the UK offer a wide range of opportunities for buyers. By conducting thorough research, seeking professional advice, and attending property viewings, buyers can confidently participate in auctions and potentially secure valuable properties at competitive prices.
Remember, if you are thinking about buying a property through 247 Property Auctions, create an account on our website so that you can see all the legal and other documents associated with the property in which you are interested. This will also allow you to see any block booking arrangements for viewing the property, as well as set yourself up to bid, should you decide you wish to do so. If you have any questions about a property or the process that is not answered by the various documents, please email info@247propertyauctions.co.uk.