Seized Property Auctions

Seized property auctions usually put up articles and properties that have come on foreclosure or bankruptcy or seized from criminals. These Seized property auctions are conducted periodically to recover costs by Banks or credit societies and by the Police Department to do away with seized properties from criminals.

There is a lot to gain from such seized property auctions as the goods and properties are available at a much lesser price than the true market values. It is usually about 40% lesser than its market value. If you can turn a blind eye to its ugly roots of origin then you are all set to buy at a better bargain.

Reasons for buying through seized property auctions:

1. No reserve price: There is no reserve price set at seized property auctions i.e. no lowest price is predetermined by the auctioneer.

2. Lowest prices: These properties would require maximum repair and sprucing up. If you have the resources to repair at inexpensive prices you have a great bargain.

3. If you are looking to start your own business and need property at a low price then seized property auction is the best option.

4. Not much competition from other bidders. The seized property auction is yet an unexplored business by the general public.

5. The bidding is not engineered to raise the bidding since seized property auctions are usually conducted by government. Profits are not the primary concern but to merely at recovering costs.

6. The seller is serious and at no point will withdraw the property as in public auctions.

7. Quick buying – in less than 5 minutes the property you choose is yours.

8. The traditional process of buying a property is fraught with tedious procedures and is time consuming whereas seized property auctions that are sponsored by the government are quick and easy to use.

Catalogue of properties available on seized property auctions:

1. Townhouses – £2, 03,000 paid at an auction for a town house.

2. £260,000 paid as against £400,000 - £450,000 for an Islington apartment.

3. £165,000 paid for an apartment. The traditional market value is at least £80,000 more.

4. Mill-houses, cottages and cemetery lodges. A symmetry lodge was sold for £344,000

5. 5. Public toilets are available for £90,000 only.

6. A two bedroom flat at Surrey cost £119,000

Finance available for buying at seized property auctions:

If you have no finance then find a broker who can get you a lender. But the lender will not be flexible with the finance. You must be careful not to overbid. If the price exceeds the normal market value then the lender may not finance your deal.

Seized property auctions will want 10% of the price once you win the bid. In case of failure to pay up you will lose your bid. So ensure that you have at least the 10% deposit amount ready. If you fail to pay up you are at risk of losing the deposit. So if you are certain about the property you wish to bid for at the seized property auction then get your 10% ready.

Risks:

If you are new at the auction market then beware of bidding higher than the real value. You must have the time to attend auctions before you start bidding. Understand the process and the risk involved before venturing into buying. Most of the properties auctioned at the seized property auctions are run down and are not readily usable. They need to be worked upon. Make sure you have the finance ready for such expenses. Otherwise you might end buying something useless and worthless. You need to have the resources to turn around such properties into a hot sale later. After all you are looking for some profit on this purchase. Read the catalogue with care. Visit the property to estimate the repair work. It is always better to take a realtor with you to assess the price. Never, ever bid beyond your maximum. You might end up in more trouble.

It is now the right time to buy houses at lowest prices at a seized property auction. More and more buyers are defaulting at mortgages and we may have the best bargains at such auctions. If you have that extra finance stashed away sleeping in a fixed deposit, now is the time to make it work and earn more. Who knows seized property auction might be the short route to gaining millions.

Properties seized due to non-payment of taxes or mortgages or from criminals are put up for public auction. Seized property auctions are open to public bidding and are conducted periodically. They offer a variety of properties at dead cheap prices.