They are sometimes unusual or quirky properties that will not normally sell through estate agents and that are difficult to value or compare and really need to attract property investors, cash buyers or people looking for special deals.
However, there are also perfectly standard properties that are being sold via this route – and you’ll also find a large proportion of mid range and first time buyer development projects in the pages of the auction catalogues.
More recently, I’ve seen new build properties coming into the auction rooms as well, as developers are ‘off loading’ some of their unsold stock – and as an unfortunate result of the credit crunch, banks and lending institutions also put properties that they have had to repossess from the owners into auctions to realise some value against them quickly. This mix of stock can be regular semi detached, detached and terraced houses, flats and maisonettes.
What makes auctions so interesting is that there is a great breadth of property and land deals ranging from;
- Properties that are requiring renovation – from completely derelict properties and properties that are in poor decorative state, to those where the work has been partially done.
- Properties that are really dated now (very often Probate sales) and that need complete modernisation.
- Properties with structural problems that may require serious rebuilding to restore.
- Properties that have tenants already in-situ.
- Leasehold properties on very short leases.
- Properties which are subject to restrictions or covenants. It is always advisable to thoroughly check out the Legal Pack because these restrictions may not be obvious in the catalogue description.
- Properties which are not able to be mortgaged (or at least it will require specialist financing to get a mortgage secured on them).
- Properties owned by local authorities, mortgage companies and other public bodies such as water boards. These can include repossessions.
- Properties that are of a ‘non-standard construction’ i.e. concrete or timber houses.
- Properties which are going to require Change of Use Planning Permission to be turned into housing such as Ambulance stations, public lavatories and railway buildings.
- Lock up garages and other ‘storage’ dwellings.
- Properties that have part commercial use i.e. shops with flats above.
- Smaller plots of land suitable for individuals to buy (some of which may have outline planning permission for development, others may have full planning in place).
So, there really is ‘something for everyone’!
The certainty and convenience of auction is attracting more and more vendors to use this route to sell and so standard bungalows, flats, houses and land development opportunities are all regularly available.
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