When Purchasing Auction Property

By Author: Tim James
Total Articles: 33
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Purchasing is a considered to be a lucrative investment. It would reap you good return if you invest in the right property. There are many companies who auction government land for sale and offer these at incredible prices. You can choose to buy the land for such auctions.

Auctions are no longer meant to have investors buy property for the purpose of reselling it later for a profit. Nowadays, many people are making use of property auctions to find themselves auction land for sale for the purpose of settling on or building commercial establishments. Price is the main attraction: Compared to property sold through agents, auction property is normally a bargain. The bidding process is made public to make the process transparent enough. Usually, you become entitled to the property after twenty eight days of sale.

In order to find property for auction locate the relevant auctioneers and make sure you sign up for their mails. Normally, auctioneers send online information as well as catalogs about property up for auction within your area of interest. The information relayed should be useful enough: should include the acreage, ...
... locality of the land, price and a photo of the property.

Since the price of auction property is usually below the market value, many individuals tend to get all excited and want to buy the land immediately. However, this should never be the case; you are advised to hold your horses. Wait for a complete survey to be conducted. A surveyor will carry out a survey on the land noting areas which require major reclamation such as swampy areas within the land and make a report about the findings. Then you will need the services of a property appraiser in case the land needs major corrections to estimate how much money will be required to have these areas corrected. The idea is to relate the amount you will spend correcting the land with the price of the property. Many auctioneers normally provide a seller's pack that includes appraisal, survey and other information on the land, but you may still need to get your own surveyor in order to be on the safe side.

Before proceeding on to an auction, ensure you have enough money for the property since the sale becomes legally binding right away. After winning a bid, you are required to make a ten percent payment and allowing you to pay the rest within a period of twenty eight days after sale. Therefore you should never attend an auction without enough money. In case you do not have the money and you are still interested, make sure you are backed by property financing from financial institution such as banks. You should make this arrangement before the bidding day.

As it is always said, when investing in property, fall in love with the deal but not the property. Consider all the expenses as well as costs in deciding on a maximum bid such as valuation and survey fees, land insurance, arrangement fees to the mortgage broker and solicitor's fee. The idea is to spend as low as possible to acquire good property since the main aim of attending an auction is to buy gov. land for sale at a bargain not to spend more than you need to. As a result, consider other factors such as the current market value of the property and the amount of deposit you can afford.

The author of this article is associated with GovernmentAuction.com providing auction land for sale.

Website: http://www.governmentauction.com/