Many people don’t think outside of the box when it comes to purchasing a house. It’s traditional to choose a house that is advertised through your local real estate office and then accept a traditional mortgage.
However, there are other options and it’s time you looked at your local auctioneer and what their auction house has to offer. There are several reasons why using an auction house could be the best move you ever make:
Discounted Prices
Some people sell at an auction in the hope of getting more money than they would on a conventional sale. This can happen. But, the majority of sellers are looking to offload their home as fast as possible, auction houses have definitive dates where the house will be listed and should sell.
Of course, to get that sale the seller has to be happy to take less than they may get on the open market. They will need to set a minimum that covers their mortgage and other costs.
In short, there is plenty of room to purchase a house for a bargain.
Increased Options
If you include auction houses on your list then you’ll be covering more bases and potentially seeing more houses for sale.
It’s not just people selling houses quickly that use auction houses. Re-possessed houses and inheritance properties regularly go through an auction. You may be able to get a bargain and purchase a home that would have otherwise been out of your price bracket!
Speed
Purchasing a property through an auction house is faster for the seller. That also means it’s faster for you, allowing you to get into your new home sooner. Assuming the paperwork is all completed properly the property can be yours in as little as four weeks.
Cautionary Factors
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Of course, there are some things that you should be aware of when purchasing through an auction.
- No Surveys
In most cases, you won’t be able to survey the house before, or even after agreeing to buy it. The seller will list known issues but it’s hard to confirm whether this is genuine or not.
It’s possible you’ll purchase a building and find it needs a lot more work than you expected, you’ll need to be prepared for this.
- Commitment
It’s essential that you read the auction house rules. They will tell you how to bid, what bids count, and what happens if you are the winning bidder. Don’t forget that winning the auction means you’re committing to purchasing the house. You’ll need to have funds ready and comply with all the necessary terms.
Commitment includes being certain that you’ve found the right property. You should be certain that you’re familiar with the market first, this will help to prevent you from getting carried away at the auction.
Don’t forget that you need to set yourself a limit for any property you want to bid on and don’t go over that limit. If you do you may find yourself in hot water before you even complete the purchase.
