Property Auctions

By: Parmdeep Vadesha

Nowadays property auctions have become the more favorable options for people who buy as well as sell their houses. Property auctions can be done with any type of property like vacant land plots, commercial property, etc, any location that is for built as well as un-built spaces.

Property auctions are gaining in popularity because they involve better deals and less formalities. Therefore, they are considered to be the modern way of making transactions, as they are less time-consuming and much easier when closing. Property auctions involve a seller, the one who sells the property, a lender to give money or loan it, and a buyer who is willing to buy the property by borrowing money or by taking out a loan, if he does not have the necessary financing. Other sub-interventions also play an important role in the legal proceedings of property auctions.

Here are some tips that you can refer to before rushing out and buying any property from the property auctions:

1) Before venturing out for any property auctions, it is very important to hire your own solicitor to finish legal formalities.

2) When opting to buy a property from property auctions, it is very important to know about your borrowing capacity, before you start searching for the property. This will determine the price range of the properties you should look into. Calculations must also be done regarding your complete budget, which will give you a clear picture of the repayments that you can afford. And always set a maximum spending limit before getting into bidding. It is advisable that one must not take the risk of over-extending his financial capabilities.

3) Complete knowledge about borrowing capacity is essential and the first step towards a targeted search for auctioned properties. Through property auctions searches for those properties that are comprised of all favorable factors like prime location with ease of transportation, quality schools and good shops and grocer in the vicinity. This will not only ensure the inhabitant's convenience but also will enhance the property, making it attractive for the future buyers, ensuring you more money. Therefore, inspecting the property before you bid is very important.

4) Once everything is finalized on any favorable property, always ask for the copy of the contract of the sale from the estate agent. Get the contract checked from your solicitor for any irregularities.

5) While bidding for any property at auctions, always take care that you are not carried away by emotions or you may end up spending a fortune. Hiring a buyer's agent can be useful for this, too. You need to note that there are no cooling periods available for the properties bought under property auctions. I.E. you bid; you win; it's yours. Done deal.

6) After the final bid, you will have to go through financial approvals with your lender with the mortgage documents. It is advisable to carefully go through these documents before signing and returning them to your respective lender. See to it that you consult your solicitor regarding this; this will ensure that all the legal drafting is according to the rules.

Note that the date of settlement is considered to be that date when you take on the legal ownership of the place. After you have completed all the respective formalities, you will receive the keys or authority of the place from the real estate agent and then you will be free to move in, or rent it or even use it for property development.

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