Buyers and sellers are taking the auctioning process to quickly obtain or sell homes or parcel of land. The auction experience is simply a bid being submitted, the acceptance of that bid and the property is sold or bought. Sellers like the auction process because much of their financial costs are gone, as are any maintenance costs, insurance and capital gains tax. Buyers like the auction model because of the different types of properties that are being sold.
Auction houses are the usual system for buying and selling property. Contact a reputable auction house and check their listings for the type of home you want to buy. Choose the properties that you are interested in and arrange to go and see it. Auction houses are often used to quickly get rid of hard to sell property. Therefore, potential auction buyers should contact a solicitor, a builder and/or a licensed surveyor to carefully examine the property.
Auctioning properties have become very popular in the last few years, especially in the quick purchase of residential homes. These homes are being auctioned because of repossessions, bankruptcy, and homes that aren’t moving and have been on the market for a long time. Other entities, other than private homeowners, who also have an interest in auctioning properties, include government authorities, bankers, lenders and housing associations that may want to rid themselves of vacant properties.
Auction prices for various properties are usually about 20% below market value. This helps to bring in more potential buyers and sellers for a quick sale and purchase. Buyers have less than a month to pay the full auctioned price, after a 10% deposit has been paid. Potential buyers should have a financial mortgage arrangement in place because even auction purchases and sales are legally binding.
Other financial obligations include stamp duty land tax on the net auction price of the properties bought or sold. The current stamp duty rate value of 1% begins at properties over £125,000, 3% on properties over £250,000, 4% for £500,000, 5% for £1,000,000 and 7% on properties over £2,000,000.
Selling property at an auction is beneficial because it allows the seller a quick and easy monetary sale. Mixed cadres of properties are a buyer’s delight, anywhere from various types of flats, whole buildings and land, industrial edifices, farm property, offices and shopping centres. Selling a property at auctions requires selecting a property auction house and auctioneer with a wide regional reputation for handling many different types of properties.
Carefully review or have a solicitor review the auctioneer’s terms of agreement, especially highlighting the various kinds of fees and the conveyance paperwork. The auctioneer should have a legal pack for you or your solicitor to review and sign. The legal pack includes copies of the proof of ownership titles, Special Conditions of Sale, Memorandum of Sale, Land Registry Search, leases and other legal documents pertaining to purchase or sales. On the special auction day, be prepared to walk away with your home as a buyer and extra money in your pocket as a seller.
By Furkat Elmirzaev