In the dynamic world of property investment, finding your next investment or renovation project can be exciting yet challenging. While traditional house purchases have their merit, property auctions have emerged as an exciting way for savvy investors, just like you, to find their real estate project.
There are unique advantages to buying property at auction, which can make them an excellent place to discover your next project. In this blog post, we will discuss the why buying at auction is the next decision for your next project:
1. They Offer A Wide Selection Of Properties
Auctions offer various selection of properties, from residential to commercial properties; studios, flats, to terraced/semi/detached houses, properties you plan to convert into flats and even undeveloped land. There is money to be made everywhere, given that you have done your due diligence. The wide selection of properties gives potential buyers an opportunity to invest in properties that they previously wouldn’t have thought about.
2. They Are Efficient And Transparent
The process of buying at auction is efficient and very transparent. You can bid on a property, put your deposit down, instruct your solicitor and then collect the keys, all within 30 days! All interested parties have access to all the same information including the terms of sale which make potential buyers equal. This can be very appealing to individuals who want a quick and straightforward sale.
3. Potential Bargain Deals
Property auctions have for the most part been known as a place to grab a deal. They are usually distressed properties that need a bit of TLC, repossessed properties or simply properties that need a complete refurbishment, which drives down the initial price. This gives potential buyers the opportunity to purchase properties that are below market value. Resulting in higher returns once the improvements have been made.
4. A Catalog of Distressed Properties
The most common properties found at auction are distressed properties, which are properties that are in various states of disrepair and are in need of a bit (or a lot) of TLC or those who are in financial hardship and need to sell their property quickly to pull out the equity. The properties will either require anywhere from a minor to major renovation, repositioning or redevelopment.
These properties do not appeal to everyone however, this gives the potential buyer an opportunity to grab a bargain and to buy an asset with untapped potential. This is where there is a lot of money to be made.
5. Network Building and Learning Opportunities.
Visiting property auctions isn’t just about acquiring properties, it allows buyers to connect with like-minded individuals, industry professionals and property experts. This is a great way to expand your network. Engaging in conversations allows buyers to gain insight on the local market, investment strategies and best practices.
6. Allows Your Creative Juices To Flow
To see past a distressed property requires a certain type of eye. Most people can’t see past a property that is in disrepair and they wouldn’t even consider investing in a distressed property. But those buyers with that creative eye, that can envision different ways to repurpose an area will make the most money. Auctions provide creative individuals a blank canvas to turn their visions into a reality.
Real estate auctions have become an exciting and profitable option for investors and those seeking out a new project. With the diverse selection of properties, the potential to grab a bargain, the speed and transparency, the opportunity to access distressed properties which allow your creative juice to flow all offer a range of benefits of buying at auction.
However, like any important investment, it is important to do your due diligence, thoroughly research the area and the type of property you want to invest in, develop a clear strategy and understand the risks. In the innovative world we live in, property auctions have become a place to uncover hidden gems.
So whether you are an experienced or first time investor, consider buying your next property at auction and discover the new and exciting possibilities property auctions have to offer.