If you're looking to buy a bargain or sell at speed, property auctions can be a great way to do t...
If you’re looking to buy a bargain or sell at speed, property auctions can be a great way to do this. Experts at Belvoir Sheffield reveal their top tips for buying or selling investment properties at auction.
Buy A Bargain
Buying a property at auction can mean that you secure a rental investment quickly or even purchase a property below the market value.
If this is something that interests you, here are a few simple steps that you can follow;
Before the auction make sure you arrange a viewing beforehand. You can look to see if there are any hidden issues and establish why the property is for sale at auction. Speak to an agent, and assess what the demand is for property in the area and what the achievable rent return will be.
Set yourself a realistic budget based on your findings. Ask yourself if a renovation is required and when will the property be ready to move into.
On the day of the auction arrive in plenty of time, get a good position and assess the competition. Where possible attend a similar auction beforehand to get an idea of how it all works.
When bidding begins, stay calm! Don’t bid to early or in big instalments. You are making a business decision so take your time to make the right one.
Don’t buy a property for the sake of it. If you miss out on the property you were looking at, don’t ‘panic buy’ another one from the brochure. Research and viewings are essential so come back another day.
At a glance when purchasing a property from an auction
• Always visit beforehand
• Do your research
• Be realistic
Sell at speed
When selling at an auction do some investigation into the value of the property and also the demand in the area for where you are selling. After choosing an auction to go to, have a look to see how it is advertised, when and with who. The more people who know about the auction the better.
Always make sure your property is looking its best. Would a little decoration help to maximise your profit. It is not always best to sell in its current state.
Have a reserve price in mind (based upon market conditions) and if you would like to, let the auctioneer know the minimum you would like to accept.
Once the winning bidder has been chosen, the transaction is likely to move swiftly, have all the necessary paperwork ready so completion can be done as quickly as possible.
One of Sheffield's largest property auctioneers, Mark Jenkinson can be found here
If you would like to contact Belvoir Sheffield to see how our property experts can assist you then click here