March 11th, 2014. Ben Lloyd
Where to get the Best Property Auction Deals
Going to auction is one of the best ways to get a property with minimum fuss and a very low price tag. Before you go to auction, you need to ensure that your finances are sorted, whether that’s in the form of bridging finance, a mortgage in principle or simply having the cash available.
Here are some of the best places to get an amazing deal on auction property:
Local Auction Houses
It may sound obvious, but by finding small local auction houses you stand the best chance of walking away with a bargain in the location you want. By choosing a smaller auction house you are also able to reduce the amount of competition over a selected property, theoretically letting you get it for cheaper than you would in a large auction.
If you’re looking for a commercial property then find an auctioneer that specialises in it. This way you can keep an eye on several potential properties, giving you a Plan B for if/ when the price gets too high on any of the lots you were after. Having alternative options is a great way to prevent walking away from an auction empty handed or having spent more than you had hoped for.
Choose the Auction House Wisely
When you’re not looking for anything in particular, but you do know roughly what you’re after then it all boils down to choosing the right auctioneer. As mentioned above, auction houses all specialise in different types of property. Ensuring you are going to the right place will help to secure a better price overall. Some of the best auction houses in the UK include:
• Allsop: the largest auctioneers around, covering everything from studio apartments to complete portfolios.
• Barnard Marcus: have properties nationwide, but all their auction houses are found in London.
• Fox & Sons: cover homes that need renovation in Southampton, excellent for developers.
• Savills: specialize in high-end houses with lots of notable London addresses going up for auction.
• Symonds & Sampson: are where you go for buy-to-let homes and building plots for development.
• Wilsons Auctions: have six offices across the country where they auction small homes and shops.
Always remember to thoroughly look at the lot list to see what is available, and wherever possible arrange to see the property in person to save you purchasing a property that isn’t the same as its description.
General Auction Tips
In addition to choosing the right auctioneers, there are some key skills needed in order to get the most out of an auction. The best thing you can do is give yourself a limit and stick to it. Even if the property you love comes up, if it shoots up to more than you can afford then it just wasn’t meant to be. Don’t forget in addition to the purchase fee you need to include legal costs and stamp duty.
By following all these tips, you’ll be an expert at getting bargains in an auction in no time at all. Good luck and happy bidding!
Article By Ben Lloyd
March 11th, 2014
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben