What are the merits and demerits of auctioned properties?

Published: 21st June 2010
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The bidding of property at lesser value than the market value is generally seen at the property auction. Do you know why the properties are auctioned? There are lots of reasons for auctioning the property. For example foreclosure properties are auctioned, rundown properties or the seized property. The main reason for buying the property at auctions is they sell for lesser value than the original value of the property. You see every year hundreds and hundreds of properties are auctioned at different places in the world.

Generally you see the people at property auction are for bargaining the property for investment purpose. The brokers or owners of property house are also seen at the auction that buys lots of properties at low price and sells at higher value. Make sure you get all the details given below from the auctioneer for a particular property. The details which should be provided are the location of the land, construction and accommodation details like whether it's a three bedroom service apartment or a studio apartment or an individual bungalow, receipts of the last maintenance paid by the owner or has any refurbishment charges for the property.

Merits of auction properties:

The main merit when you buy an auctioned property is you get the property in lesser market value. When you are in need of urgent money and have decided to sell your property then don't contract the property seller because they can take a lot of time to sell your property. The best option is to contact the auction company who can sell your property in 5 minutes. The transaction of money is faster than at the property house. If you are aware of share market then you must know the market goes up and down all the time. You can trade the property at greater value than you brought the property at lesser value when the market is up. This can become a little risky if you don't pay attention to the market.

Demerits of auction properties:

The demerit of property auction is that you need to have cash in hand while tending the property. Another demerit is that you pay a lot for the damages of the property which was brought of a lesser price. So when you acquire a property ask the owner tat why is he/she is selling the property. If you have time and are determined to buy the property then you can check out the place before bargaining at auction. This way you will know that how much should you bid for the property. Buying a property at auction is not profitable for a person who doesn't have ready cash on hand. At least you need to have ten to fifteen percent of auction money on bank account or cash.

Andrew Wilson is a SEO copywriter for Property auctions and UK auction list. He has written many articles in various topics like Property auction, Property auctioneers and UK property auctions. For more information Contact him at andrew123seo@gmail.com

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