Property Auctions - House Auctions 

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The fact that some property investors are nervous about the very idea of taking part in property auctions merely helps make the prospect more appealing for astute investors. You will find a real mix of owners, occupiers, developers and investors at property auctions in the United Kingdom.

There are often real bargains to be had, with buyers snapping up lots at house auctions for 40 per cent or more below their market value. Needless to say, you will have to do a lot of homework and a fair amount of legwork if you are planning to make a good profit at property auctions. A good place to start researching your potential property bargain is online. There are thousands of properties listed on UK property websites, but you must be aware of the risks.

There is often a good reason why a property is put up for auction at a lower price. Be prepared to take your time to look into the state of the property and the reasons for auctioning it. Properties can be put up for auction for a variety of reasons. Landlords may use property auctions to offload properties quickly for practical or tactical reasons, for example due to the return on investment they provide.

Property auctions typically also include rundown properties that cannot be sold through an estate agent. They can form surprisingly popular investment opportunities for property investment clubs and individuals who specialise in refurbishing properties in good locations and selling them on at a profit.

You will have to check whether a property coming up for auction may pose problems with dubious legal titles, subsidence, planned major developments nearby or is sold subject to covenants or restrictions, which prevent normal use.

UK property auctions can range in size from large composite countrywide auctions of over 100 lots and hundreds of investors run by a specialist auction house at a hotel or conference centre to small property auctions of just 2-5 lots taking place in a local pub, hotel or office. Single lot auctions are usually held for properties that are in great demand.

Property auctions have the great benefit that you decide where you draw the line on what you are prepared to pay for a property. The final purchasing price will depend on the level of competition at auction, but provided you are well-organised and have your finances sorted out, transfer of ownership can be completed within days.

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