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The advantages of using auctions to buy property

The advantages of using auctions to buy property

Perhaps the greatest advantage of using auctions through which to purchase property is, because of the very nature of much of the property that is found for sale at auctions, that more often than not property can be bought at a very low rate when compared with its actual market value. There are several reasons for this, the main one being that much of the property for sale in auctions is either repossessed or foreclosed property.

The recent catastrophic financial situation has left many banks with long lists of foreclosed property, much of which they are only too willing to let go at a price that can be well below the property’s true market value. The very nature of banks is such that they would rather get rid of a “worthless” title deed in exchange for clearing a debt that amounts to the balance owing on a mortgage before foreclosure.

Repossessed property is not found in the High Street real estate windows – very few real estate agents are interested in representing the banks, and such properties almost always end up being auctioned by a company that specializes in foreclosed property and selling property as an investment.

The price at which you can pick up property at an auction is not the only advantage of using auctions to purchase property. Other advantages include:

  • Properties are scrutinized and evaluated for you and you receive a comprehensive due diligence package before the auction
  • Because of competitive bidding properties can usually be purchased at a fair market price
  • The purchaser knows that the seller is committed to the sale, which goes through at the fall of the hammer.
  • There are no offers and counter-offers to worry about so there are no lengthy periods of negotiation..
  • Auctions reduce the time it takes for a transfer to take place
  • Ultimately the bidding buyers, who know that they are bidding without any favouritism, are on the same conditions as other bidders.
  • Buyers can organize the finance that suits them best
  • There are no hidden agendas
  • Purchase and closure dates are known beforehand.
  • You get your answer right there and then

As you can see, there are plenty of advantages of using auctions to buy property.

 
Looking for repo properties?   contact us on 081 472 1203
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