Homes for sale at auction in Scotland are marketed by agents such as, Future Property Auctions, Auction House Scotland, and The Glasgow Property Agency but it is a type of purchase that people might know less about than the usual property buying process.
Types of property sold at auction
Most properties can be sold at auction, but there are some types that are more likely to be put to auction, rather than through more traditional methods.
- Properties with renovation potential – Developers looking for a property to modernise or refurbish often seek out opportunities at auction
- Land for building on – Plots and land for development (often coming with some planning permission) are sought after at auction
- Property selling for less than market value – Sellers looking for a quick sale or properties that have been repossessed
- Properties that have been left empty
Buying property at auction
For those of us who have watched Homes Under the Hammer, it’s clear that there is a buzz and excitement about buying property this way and there are certainly advantages.
- Property is often cheaper and you are aware of what the other buyers are offering, so it’s more transparent
- The sale also goes through quickly
- In some cases, the auction may accept offers before the event itself takes place
However, if you’re not familiar with the auction process, it can seem daunting and it’s best to do your research beforehand.
- Due to the increased speed of the transaction, your mortgage or finance should be in place before considering a bid. You should have discussed that you are looking at auction property with your lender as it can change the terms of the loan
- Be willing to take on a project. Often, the properties sold at auction will be in need of renovation. You can arrange to view the property and review the Home Report in advance of the auction. You may also want to arrange your own survey and get some estimates for work before you decide to bid
- Properties can be highly attractive to buyers so it can be highly competitive
The auction process
Auctions take place across the country regularly but you do not always have to be physically present on the day. You can bid over the phone or pay your solicitor to bid on your behalf. In some cases you may be able to bid online. The methods available to you will vary depending on the agent handling the sales auction so it is best to contact them directly. This is a good idea anyway, especially if you have never been to auction before. The agent will be able to offer advice on the process and what you should do – and allay your fears that you might accidentally sneeze and make a purchase! It’s also a good idea to go along and just observe the first time to get a feel for how it works.
Search auction properties at s1homes.com to find your next potential property.