Sally Smith, Director and Auctioneer at Loveitts, Coventry’s only local property Auctioneer, explains the attractions of buying a home under the hammer…..
Speed - We’ve all heard tales of property sales stretching out for months and months, thanks to long chains of buyers/sellers, problems revealed by a survey or even uncommitted vendors. In contrast, auctions are speedy. Contracts can be exchanged within 4-6 weeks of properties being listed for auction.
Certainty – Once the reserve price is met and the hammer goes down at auction, the sale is certain. That’s a great advantage. Buyers know where they stand because vendors cannot pull out. Wave goodbye to gazumping – that’s a relief.
Transparency – if there is a lot of competition for a property, you’ll see it. You’ll know what rival buyers are prepared to bid and judge accordingly. You won’t be left wondering for years to come if you could have secured it more cheaply.
Bargain – properties are often sent to auction when the vendor wants to be assured of a quick sale, so there are bargains to be had. And they are not all ‘doer uppers’. Do your research and you could bag a bargain.
Variety - a wide variety of property comes under the hammer, from pubs, shops, workshops, flats, family homes to parcels of land, with or without planning permission, and homes in need of renovation.
Unusual – if you’re after a quirky property, auctions are often the place to look as it a good place to test their market value. Examples include a former BT repeater station up for auction in Coventry recently which had been turned into a recording studio.
Mortgage – don’t be put off by thinking auctions are for cash sales only – you can get a mortgage lined up if you do the groundwork, talk to your bank or building society and have a survey done in advance.
Convenient – if that sounds like a lot of work, remember you’d have to do it all in the long run. Buying at auction just means you need to do it promptly. But then it’s done, dusted, you’ve either got your dream purchase, or not.
No stalling – buying at auction means there will be no protracted negotiations with the vendor, long-winded bidding wars with other buyers or endless back and forth via the estate agents. All that will be compacted into a couple of hours. Which leads to ……
Excitement – there’s no doubt that it’s exciting to buy at auction. But part of the thrill comes from knowing that you are in charge until the hammer comes down – you do your research, choose your price and make the final decision. Until you’re outbid, of course.