Buying a property that has gone to auction has become a popular practice. This has resulted in many people not doing enough research or inspection on the property or surrounding area and therefore not getting the “bargain” they had hoped for. Some of the perks of buying at auction are that the process is quick, if done correctly you can find bargains, usually you will be competing against fewer people than if the home were on the market. Some of the cons are that it could be pricey to do all of the research and legal matters, it can be time consuming, auction price be above a good price for the property, and financing the property can be difficult. Essentially, it is very important to do plenty of research and preparation before buying a home at auction.
- Buy-to-let is risky, and research is needed before jumping in to buy at auction.
- There are good advantages to buying at auction for those who have done the necessary research before buying.
- Buying unknown property at auction can often cost more than an investor might think after needed repairs and such are factored in.
“So before an offer is made, it is essential to talk to local agents that know the area well to check the rental valuation and make sure that figures and anticipated profits are realistic.”
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