Buying Repossessed Properties at Auctions
Author: Parmdeep Vadesha

Every year, thousands of UK properties and homes are sold
below their real market value. Most of these are made
through property auctions, where homebuyers can have
savings of 10% to 40%. For a lot of first-time buyers,
repossessed properties are becoming an increasingly
affordable option to land a bargain.

Repossessions are expected to rise to approximately 40,000
this year, which is 45% more than last year's total of
27,100. While the increase could have a harmful effect on
the property market in general, the occurrence offers
aspiring homebuyers an opportunity to acquire housing
within their means.

Types of Properties Offered at Auctions

Property auctions offer thousands of homes available at any
given time. While a lot of these are being sold at prices
lower than their market value, it is important to note that
there are possible issues and concerns when dealing with
auctions. It is likewise essential to understand where the
biggest bargains are offered.

Household Repossessions

Auctions offer aspiring buyers repossessions, which can
often be acquired at bargain prices. Many mortgage lenders,
local authorities and housing associations put up their
repossessed properties for sale at typically more
affordable prices to ensure that they are sold quickly.

Investment Properties

These properties are valued based on the return on
investment that they provide. They usually consist of
individual office or shop investments to blocks of flats.

Rundown Properties

Auctions also offer properties that are difficult to sell
in their present state. Buyers who are able to acquire such
property in an excellent location at an affordable price
can restore and resell it on substantial profits. These
type of properties are usually classified as: dilapidated
or in dilapidated areas; subject to severe disrepair, local
authority notices, or closing orders; offered with vague
legal titles; sold without access; sold with major fencing,
paving, drainage or other responsibilities similar to
these; sold subject to covenants or constraints, preventing
normal use; and exceptional properties, which refer to
those with historical backgrounds and areas that obstruct
major development plans.

When purchasing at auctions, buyers should take note of the
following tips:

* Never buy a property before you have sold yours, or
before the completion has occurred. This advice is
particularly useful for buyers who are depending on the
sale to buy at auction.

* Never buy a property without having had a survey
performed. The survey will not only help the buyer avoid
the possibility of dealing with building problems. It will
also help them determine their mortgage limit and the
amount of deposit they would need.

* Establish a maximum value on the property. Buyers should
never get carried away and should stick with the price
limit they have initially set.

Before deciding to make a purchase from auctions, it's
fundamental that buyers understand the way auctions work.
Once they fully comprehend the method, they can confidently
make the decision to buy.


About the Author:

Parmdeep Vadesha is a property investment expert and
founder of the largest community of property entrepreneurs
on the web who buy below market value properties from
distressed homeowners facing repossession, divorce and
bankruptcy. He writes a monthly newsletter for over 70,000
property investors worldwide -
http://www.Property-System.com