Property Auctions - Advantage for the Buyers

Buying at property auctions has numerous advantages if only you are familiar with the auction procedure and capable of taking quick on-the-spot decisions. It is also essential you maintain your cool and not act impulsively during the bidding.

Some buyers at the property auction suddenly get emotionally challenged and needlessly overbid. You can get the property that you have your eyes set upon quite cheaply if the bidding is slow and you soberly participate in the bidding process.

Buying property at an auction can be stressful because of the huge investment involved. But, if you know beforehand all about the property in question and its market value and clear in your mind about the limit of your bidding, then you will have nothing to fear about the auction process.

• The foremost advantage of buying at auction is you will be able to buy the property at below market prices. There are several instances of people having bought properties in auction at prices 30 to 40 percent cheaper than the prevailing market rates.


• Providing you are attending multi-property auction, you will get to see many offerings at one place instead of running around.


• Buying at auctions means the transaction goes through immediately and there are no protracted negotiations.


• As a buyer, you are aware that you are competing fairly and on the same terms as the other bidders and there is nothing clandestine about the deal. This way, you can offer the price you feel most reasonable when competitive bidding takes place.


• You are also aware that the seller is firmly committed to sell and there can be no going back once your offer is accepted. You need not be apprehensive about any sudden development at the last minute, like the seller backing out.


• You are furnished with all the pertinent information about the property in advance and you can consult your friends and other professionals about the wisdom of buying the property.


• The property is available for sale on the auction date to all interested buyers and everyone gets an equal opportunity to buy.


• Legal documents relating to the sale of the property would be supplied to you in advance to help you inspect the property.


• The sale deed can be signed and exchanged on the same day the property auction is held.


• You can become the owner of the property you wish to buy within 30 days of the auction close. There is no danger of any untoward development as the contract of sale is binding on the seller as soon as the gavel falls.

But before buying property at an auction, it is advisable that you attend a couple of property auctions as an observer and become familiar with the auction process. Remember that when bidding at a property auction, you must carry enough funds to pay the initial deposit of 10 percent on the day of the auction sale.

You should also have your mortgage arrangement in place to pay the balance 90 percent if you are the successful bidder. You will however be given 28 days to make balance payment and complete the transaction. Please know if you are the successful bidder, you will have to necessarily buy the property and there can be no reneging.