Buying Land at Auction
Posted by The Landsite on 23rd September 2022 -
It may be hard come by these days but in its simplest terms, buying land can be lucrative when done well.
Covid has driven a change in how property transactions take place over the past two years with a noticeable increase in the number of deals taking place at auctions.
This has been accelerated due to the ease of access in the form of online auctions, expedited by the pandemic as in-room public auctions could no longer take place. Online auctions appear to be a trend that is set to stay.
Why buy land at Auction?
Transparency:
Auctions offer a fair way of everyone having an equal chance of securing land or plot as the buyer can witness other bidders’ intentions.
A faster process:
On the fall of the gavel there is an exchange of contracts, with completion 28 days later unless altered within the special conditions of sale which are made available to buyers before the auction.
‘The beauty of buying from auction is that you exchange contracts with the seller as soon as you win the auction. So, there's no chance the seller can change their mind and try and up the price afterwards. Furthermore, you could win the property at a lower price than you were prepared to bid up to.’ - Auction House London.
Legal packs:
Legal packs are available to all potential buyers prior to auction. This includes information such as searches, title deeds, leases for tenanted property, as well as any relevant planning permissions.
‘Auction is one of the fastest and most secure ways of selling and purchasing property or land. When the gavel falls, contracts are exchanged immediately with the completion set at a predetermined date. From this point on, the sale is legally binding and there is no fear of fall-throughs or gazumping. For sellers – By gathering all potential purchasers together in the same place at the same time creates a sense of urgency and wanting, so you can rest assured the price achieved is the best you could possibly obtain. For purchasers – Most property that is sold at auction has the opportunity to either add value to or creates a longer investment opportunity for you. Auction property has always proven a popular method for investors, landlords, and developers alike.’ - Connect UK Auctions
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