Why buy a property at auction?

Whether you’re looking for a renovation project, your future family home or getting ready to expand your investment portfolio – buying a property is a big decision that means something different to everyone. However, the process of buying a house is known for the long wait times, the tough negotiations and the lack of security, which can leave certain buyers feeling defeated and unsure of where to turn.

Property auctions shouldn’t be overlooked for anyone looking to become a future property owner. Auctions provide a wide range of benefits when it comes to buying a house and offer buyers a secure and fast way to find their dream property. In this advice guide, we are going to take you through all the advantages of buying at auction and why buyers should consider it when property hunting.

Why buy properties at auction?

Property auctions offer buyers a wide range of benefits and accommodate various needs. From those who want to buy fast to those who are looking for transparency, below you can find a list of all of the reasons why buying a property at auction can be the best option for you.

Auctions are a quick way to purchase a property

The quickness of the auction process is one of the number one benefits for buyers. Everything is more streamlined and controlled than estate agent sales, even down to having the property legal pack paperwork available when browsing the catalogues, which you can read before the auction and can save you a lot of time during the buying process. There’s no guesswork or hoping you get offered the house by chance. At auction, if you find a property you like and make a winning bid, you’ll put down a reservation fee and it’s yours.

You’ll then have a specific time frame for completing the transaction depending on whether it’s a conditional or unconditional offer. Conditional offers take 60 days to complete and unconditional take 30 days to complete. If you want to know more about conditional and unconditional auctions then you can read through our blog for more advice.

Everything is transparent and secure

At auction there are no hidden fees, what you see is what you get. As soon as the hammer falls, there’s no falling through from other last-minute offers. So you can go into the auction feeling confident that you’re not wasting time and that your bids are secure.

More likely to find a good deal

With property market prices on the rise and households looking to make smarter money decisions, it’s no wonder buyers are looking for the best deals. At auction, some of the properties come with low reservation prices, so if you get lucky on the day and manage to avoid a bidding war, you might come out of it with a very good deal.

All buyers are on even footing

At auction, everyone is on an equal playing field, there are no biases and this means everyone has an equal chance to find a property and is much more likely to experience success at auction.

No negotiating at auction

Buying a property through an estate agent can involve a degree of negotiating which can be a lengthy process. This can require a lot of back and forth, but at auction what you see is what you get, if you successfully bid on a property then the price you put down is the price you pay.

It’s not only houses

Many kinds of property can be sold at auction and they’re a great opportunity to find some hidden gems. From garages close to your home to pieces of land and commercial property, auctions see a whole range of properties come and go, meaning you may find some hidden gems during the auction process.

You can do it from your own home

In recent years property auctions have moved online and are now more accessible than ever. You can buy and bid on properties from the comfort of your own home. Whether it’s by phone or online, you can join a live stream to get in on the action wherever you are.

There’s available financing

Another great thing about auctions is that financing such as mortgages and loans is available to buyers. You’ll need to get a decision in principle from a mortgage provider, sometimes also known as an ‘agreement in principle’ and this will help you to know what you can and can’t afford at auction using a loan/mortgage.

If you want to know more about getting a mortgage for an auction you can read our blog for more help and guidance.

What to expect when buying at auction

As the UK’s leading live-streamed property auctioneer, we know a thing or two about how the auction process works. To help you know what to expect, we’ve included a small step-by-step guide, but for more in-depth advice on the subject, read our guide to buying a property at auction.

1. Do your research and browse the properties that interest you, visit them in person before committing yourself to buying the property at auction. You should also be reading the legal packs and consulting your solicitor carefully before the auction begins.
2. Get your finances in place, you can do this by setting a budget for yourself and contacting a mortgage advisor.
3. Bid on the property. Once everything is organised and the day of the auction comes around, you can then bid on your choice of property. Having done your research and sorted your finances will help the process for any winning bid go smoother. However, remember that the timeline for securing funding depends on whether the property is being sold as conditional or unconditional.

Give property auctions a try with SDL Property Auctions

Auctions have many hidden benefits from the lack of negotiations to providing a quick and easy way of purchasing a property for those who like to move fast, and now with our online auctions, you don’t even have to leave your house to enjoy all these benefits.

If you’re interested in reaping these benefits for yourself and trying your hand at the auction scene, here at SDL Property Auctions, we host online Auction Events on the last Thursday of each month so you can find your dream property. Additionally, our Timed Auctions and Buy It Now auctions offer alternative ways to buy that still provide the benefits of traditional auctions.

You can also read through our buyer’s facts and questions page to help you better understand the auction process.