Buy a Cheap Home

Buying a property is a big step for anyone to take. A property will be the biggest purchase of your life and for low to medium earners one that can be very hard to initially buy. The hard work often pays off though as you can find yourself with a good return on investment, especially if you buy a Below Market Value Property which often come in the form of repossessed homes.

A repossessed home is becoming more and more common and whilst there are a wide variety of reasons for them to happen, one of the most common reasons is the owner struggling to pay their outgoings on a monthly basis. Once this happens more frequently, a back log occurs and they get into more trouble. Often, the only option for them is declare themselves bankrupt and it is generally at this point their house is repossessed and is put up on a Residential property auction.

Because these houses often require a quick property sale they can be available for far less than if they were valued and put on the open market which makes them a great investment for first time buyers. Of course, its not just first time buyers that like to take advantage of the investment opportunity, it is honed business men and women who see their next money making opportunity.

It is because of this that it is important that you do your research prior to attending the auction and if possible attend other auctions before the one you want to bid in so you can get a feel for how they work. If the process is all a little daunting or you find attending these live auctions problematic then there are a whole host of online property auctions these days that you can safely bid in the comfort of your own home.

Things you should know about Property Auctions

So, you’ve bitten the bullet and decided to try and buy BMV property through an auction. Hopefully you have chosen to do this having spent some considerable time researching and attending previous auctions so you have got a feel for what they are like, what the process is and how the format works.

Here are just a few reminders for you prior to your big day:

  1. Before bidding takes place it is a good idea to get pre-qualified by a lender so you know that you have the financing on the spot if you are the successful bidder.
  2. When the hammer goes down and the auctioneer says sold, that property is yours. There is no going back at this point so you need to have made sure you have researched the property well and are certain you want it.
  3. On any given auction day it is quite possible for twenty plus properties to be up for auction and each one could take as little as an hour to be won, so you need to be on the ball and make sure you are ready for your ‘lot’. If you snooze you lose.
  4. Keep to budget. One of the biggest pitfalls people face is when they get too excited and end up bidding more than they have originally allowed for the property. This can lead to all manner of problems so stay disciplined.

Of course, these days, auctions can be even easier than this. Surf online and you will come across Property for sale by auction online, which makes the whole process as easy as bidding for something on your other favourite online auction sites.