Property Auctions

US method property auctions launch in UK

2009-06-29T05:00:00.000-07:00

The first American style auctions of upset properties in the UK are expected to attract large crowds when they start next week.

More than 500 properties that have been repossessed by banks and other lenders are due to go below the hammer at different locations in England, Wales, Scotland and Northern Ireland at a series of auctions being run by US auction house REDC starting on March 31.

The style is expected to be a bit more brash and upfront than the more calm auctions that take place in the UK. Previously the company, one of the US's leading auction businesses, has spent tens of thousands of pounds on a massive marketing campaign which has included adverts on the television, the newspapers and outdoor billboards.

Jeffrey Frieden, CEO (Chief Executive Officer) and co-founder of REDC, said the aim is to attract normal people to the property auctions rather than just the professionals who tend to go to UK sales.

'Unlike traditional auction houses' which have limited their pool of potential buyers to groups of savvy investors' REDC's model is built on exposing its auction properties to as many people and as many markets as possible,' he explained.

'We consider that everyone should be entitled to a bargain not just a select group of professional property investors,' he added.

Property advisor Keith Hollinrake who is advising REDC said they are expecting crowds of between 500 and 1,000 at each sale.

He admits he was not sure at first if the concept would work in the UK but after visiting some of their sales in the US he decided it was a good concept.

He has advised against some of the brasher aspects of the company's US auctions such as ringing bells when a lot is sold and spotters in the viewers wearing tuxedos.

Hollinrake also believes that it could change auction property sales for the improved. 'The industry will have a shiver up and people will be looking at it more,' he said.

Great increase in buying property by auction

2009-06-23T22:26:00.000-07:00

Buying a property at auction is fast rising as a popular method of buying property, with 21,000 homes going under the hammer each year.

There has been a 60% boost in the number of properties being bought and sold at auction since 1998, according to a leading provider of auction information across the UK.

Thousands of bargain hunters and professional investors are turning to the UK's auction rooms to find their perfect property at reasonable prices. But research is the key, and novices keen on buying at auction should carry out adequate checks before the hammer falls. Auction experts exhibiting at the Property Investor Show present the following advice on how to make the most out of buying at auction:

* Investigate the lots for sale. You can either contact the auction house or search online for information of all the properties for sale at auction.
* Arrange to view any of the lots you are interested in buying and research the property carefully. You could ask local estate agents or neighbours for their view.
* Many properties being sold at auction are in need of development, so make sure you are aware of how much time and money needs to be invested in the property.
* Carry out detailed checks on the property in question, including land, legal and structural surveys. It is best to look for advice from a professional.
* Sort your money. If you profitably bid for a property, you will need to pay a 10% deposit on the fall of the hammer and the balance within 28 days.

Buying at auction has become a lot easier for both novice and professional investors, with the number of properties being bought and sold at auction rising by 60% since 1998. One of the main reasons for this is the internet, which facilitates the entire process, giving potential buyers access to information on lots for sale across the country in advance of the auction.

Buying property abroad through auction is also becoming a more well-liked option. Inez Rix, director and auctioneer of Direct Auctions, a Spanish auction house exhibiting at the Property Investor offer commented: "One of the main reasons buying overseas property at auction has been so successful is that the properties are commonly considerably cheaper than in the open market. It is possible to buy an overseas property at auction up to 50% lower than other similar properties."

Valuation of property

2009-05-11T00:08:00.000-07:00

You have to keep certain things on mind while valuing your property. When an estate agent or some one values your property it is just an estimation of what someone else might pay for it. If the price is wrong it can damage your chances of sale. The following details will help you as to how properties are valued and then how sellers can approach the current market.

A homeowner can value the property by using comparables: Homeowners can find out range of homes similar to your own and look at the price that they have sold for recently and position your own property accordingly. You can find sold prices by either paying to consult the Land Registry Database.

It would be better if you take in opinion of certain estate agents. You might be under suspicion regarding estate agents valuation because he may value too high to get clients or too low to make a quick sales. A good estate agent will make their estimate more accurate.

Synopsis on commercial property

2009-04-06T03:03:00.000-07:00

Commercial property is real estate which is used for profit businesses-such as office complexes, shopping malls, service stations and restaurants. It falls between residential and industrial property. Practically every incorporated city uses a zoning system to regulate the use of property within its jurisdiction. In order to grant permission to build a new office complex or other-profit making business, the city government must determine that the chosen area is indeed commercial property. The zones which separate industrial, residential and commercial property are clearly marked on city maps. Commercial property can be held by real estate agents who treat it the same as residential property.

Cities often use zoning laws to prevent conflicts between residential homeowners and businesses. Some areas of the city may be designated for mixed usage which means some commercial property may be used for residential purposes. A quaint downtown shopping area with apartments would be an example of mixed usage.

How to avoid an expulsion in a foreclosure property

2009-03-31T23:20:00.000-07:00

If you are experiencing difficulties in making your mortgage payments, then meticulously follow these steps. If you have received a notice from your lender asking you to contact them, do not ignore the reminders but contact the moneylender immediately. You can even seek advice from any HUD approved Housing Counseling Agency.

If you are unable to make your mortgage payment:

= Do not ignore the problem - if you do, the harder it will be to pay back your loan and the more likely that you will lose your house.

= Immediately contact your lender as soon as you realize that you have a problem - please know lenders are not eager to seize your home. They may offer useful suggestions to borrowers through difficult financial times.

= Make it a point to respond to all mail received from your lender - the first few notices you receive will offer useful information about foreclosure prevention options. Later mail may include important notice warning legal action. Your failure to open the mail will not be acceptable in foreclosure court.

= Learn and understand your mortgage rights - read the loan documents so you know what your lender may do if you default your payments. Learn also about the foreclosure laws and timeframes in your state by contacting the State Government Housing Office.

= Understand foreclosure prevention options - Valuable information about foreclosure prevention (loss mitigation) options can be found on the internet sites.

= Contact a HUD-approved housing counselor - The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options.

= Sell your assets - After healthcare, keeping your house should be your first priority. Do you have assets - a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan?

Redemption may be called a grace period after your home has already been sold at a foreclosure sale that provides you with one more opportunity to reclaim your home. All you have to do is to fully pay the outstanding mortgage balance and all costs connected with the foreclosure process. The duration of the redemption period and availability, however, depends on whether the foreclosure is judicial or non-judicial. Some states, such as Illinois and Minnesota have a long redemption period where a homeowner can still hold on their home and thus shun a mortgage foreclosure. If you happen to live in the state of Minnesota, you may be allowed to clear up your back payments six months redemption period before the finishing formalities.

Though the redemption period is generally prior to the expulsion, some states make it easier by placing the redemption period before the sale while others allow a redemption period only after the auction is over. Avoid the embarrassment of letting the new owners tell you to quit the property right away so that they can shift in. If you live in a state that permits the redemption grace period after the sale, the buyers cannot by force throw out you by law. You are the one who is sheltered by law. You can use the whole time selected by the redemption period to try to come up with the funds, or if you are not able, you can utilize that time to find appropriate alternate lodging.

What is commercial property?

2009-03-03T00:35:00.000-08:00

Commercial property is a real estate property that is designed for use in specific types of business situations. Commercial property is involved in money making business and not used for actual production of goods. Real estate laws tend to draw a clear line between residential, industrial and commercial property. For example, a residential house is not considered a commercial property even if the home were rented out as part of a business venture. At the same time, an apartment building with multiple units of living space would be considered a proper commercial property. Research facilities are also considered as commercial property. Even doctor offices come in this category.

What is Foreclosure house?

2009-02-11T23:32:00.000-08:00

Foreclosure house means that a property is sold to pay off the debts because borrower was not able to pay loan amount on time. If the borrower does not pay the debts on time specified in the mortgage contract, lender can sell the property to pay off the loan. Most of the foreclosure properties are sold at reduced value because lender wants to recover his amount soon. Some foreclosed houses are sold through property auction. Some foreclosed properties are in excellent condition; others need a great deal of repairs. It is important that you inspect the property prior to placing a bid. Also try to check the value of comparable homes to know if the price is reasonable. Listings of foreclosed homes are published in newspapers, Internet, newsletters and real estate magazines.

How to sell a property through Real estate Auctions?

2009-02-04T04:27:00.000-08:00

The main benefit of Real estate auction is that you can gather lot of buyers at a single place on a particular date and time so that they can compete against each other for property. Instead of meeting various buyers, the deal can be settled within a few hours and best price can be found among them. This has many benefits, it saves time and the property is quickly disposed off. A minimum bid price is set up in the beginning of the auction if the price surpasses minimum bid price then the property is sold to that person. If you see a commercial, residential property takes some time to sell. The seller has to meet lot of prospective buyers and negotiate with them individually to get the acceptable price which may not be the best available price. But if a property is sold through real estate auction the transaction gets faster. This is the best method because you can get all the prospective buyers at the same time and at the same place and this may save time on individual negotiations. Real estate auction can be of no reserve price and minimum bid type.

Points to remember before going in for a property auction

2009-01-13T03:02:00.000-08:00

Buying a property house from auction house may cost less when compared to real estate agent. You may be surprised to believe the value of the property in auction market. These properties no longer possess their original market value and are now being sold at a lesser price. Properties that are foreclosed or repossessed are misfortune of some people but are a gain for buyers like you. Properties that are sold in auction are more than half the value. For eg., The value of a house may be £100,000 but in property auction it is sold at £20,000 or even less. This means it is more than 50% off. The money that is saved can be used for furnishings or for other remodeling work. Before attending property auction do read some articles that can be found in real estate magazines or check the internet to find some excellent sources of information. Collect information from people who visit these events. Do attend a couple of events so that you can familiarize yourself with the actual procedure.

Before buying a house through property auction do visit the house in the daylight. Also visit the past owners so that you can find more information about the property. If you buy a house at property auction on seeing the brochures and promotional leaflets you may end up buying something that failed to meet your taste. Before buying a property do a proper inspection of the house otherwise you may end up facing many problems. Another aspect when you purchase a property is the costing fee that is incurred. One more important aspect is that you should know your ceiling limit which means that remember your budget limit so that you do not overspend. You are there to get the best price for the property and not to throw away money.

What is auction sniping?

2009-01-06T01:30:00.000-08:00

Online auction is gaining popularity year after year. In auction sniping a leading auction site will be like a marketplace wherein the sellers can sell their goods to the buyers. Small items to big items like houses can be sold in auction sniping. The array of items for sale is staggering. Auction for an item lasts for a certain period of time. Bidders can bid for the item at a price that they are willing to pay. The highest bidder has a right to purchase the item at an agreed price at the close of an auction. Most auctions generally last for one week but some for three days and others as long as 10 days or a month. If a person bids few days before the auction ends, other bidders will get a chance to bid at a higher amount. Sniping means if you bid at the close of the auction your competitors will have less time to increase the bid. You can manually snipe, but there are also automated services in which a computer automatically places your bid just seconds before the close of an auction.

Real estate auction

2008-12-30T21:26:00.000-08:00

A real estate auction is an effective method of selling real estate. This type of auction is a win-win situation for both the seller and buyer. The advantage of seller is that he can show his/her property to many potential customers at a single instance. The seller knows exactly when the property will sell. Real estate auction enables seller to eliminate numerous and unscheduled showings.Real estate auctions are a great way to increase the visibility of a property for sale, as well. The buyer also benefits because he purchased the property at a fair market value through the process of competitive bidding. Usually buyers get enough time to make a decision as how much they want to pay, because they are provided with comprehensive information about the property before the auction begins. In multi property auctions the buyer sees many offerings in the same place at the same time. Real estate brokers can earn good commissions through real estate auctions. One can find extensive information on real estate auction through online resources. One can also bid online, thanks to the internet technology.

What is a silent auction?

2008-12-16T20:24:00.000-08:00

Silent auction technique is mostly used in charity events. A silent auction is conducted by setting up tables or displays of items or services upon which people can bid. A minimum bid is set when the item is of high value. Paper is located near the item, which allows people to write down their names and bids. This gives people a chance, during the event, to tour the different items available for auction and decide upon which items they would like to bid. In one sheet of paper all the previous bid amounts are written so that people participating in this type of auction know that they have to bid at a higher amount to get the item. Silent auction is nowadays offered in eBay, where people can bid for items and see the bids of others. In a silent auction no contact is made with the seller until bidding is finished.

Online reverse auction

2008-12-11T22:46:00.000-08:00

Reverse auction is associated with internet auction and e-purchasing. It is also known by many names like procurement auction, sourcing event, e-sourcing and e-auction. In a regular auction, purchasers are allowed to place a bid on an item, which is the amount they are willing to pay in order to buy the item. The person who places the highest bid usually ends up with the item. But in reverse auction, the opposite is true. Buyer advertises a need for an item or service. Sellers then place bids for the amount they expect to be paid in order to perform such a service or provide such an item. Generally, the seller who places the lowest bid will win the job or sell the item. Reverse auction begins with a meeting that takes place between the buyer and seller, who is known as market maker. Special considerations like the necessary materials, time frame and budget for the job are discussed at the meeting. If the buyer is interested in purchasing an item, consideration such as the age of the item and quality of the item may be discussed beforehand.

Residential investment

2008-12-01T01:57:00.000-08:00

Purchasing a home is the largest investment that you would ever make. While purchasing a property see to it that you are not pressurized by estate agents, spouse, relatives or anyone else. Do keep certain things in mind while purchasing a property. There are certain costs that you have to incur before buying or selling investment property. These costs have to be taken into account while buying a property for investment, as this will affect the return on your investment. Certain costs are purchase price, bond registration costs, transfer duty, property transfer costs, miscellaneous costs, monthly costs of ownership, estate agents commission and capital gains tax.

Transfer duty is nothing but the tax that is paid to the government on the transfer of every property from one person to another. Miscellaneous costs include costs such as levies, new carpets and curtains and other maintenance jobs that need to be completed before a tenant can move in. Capital gains tax is incurred when selling a property at profit. Bank will loan you money and in return you will have to provide the band with some form of security, which is usually a bond registered over the property. The bond allows the bank to take the property away in the event of default.

Benefits of auction to seller

2008-11-28T00:44:00.001-08:00

Properties are generally auction, sold and closed within 30 to 45 days. Pre-title work is done prior to auction date. Auction generally takes place on a specific date and at a specific time. There is a definite time of sale. The owner has the right to refuse any and all bids. Seller can set maximum market value for the home. The property can be sold for higher than the market value in the last few minutes of sale. An auction creates an aggressive marketing program that increases interest and visibility. The seller knows exactly when the property will sell. Creates competition among buyers-auction price can exceed the price of a negotiated sale. Seller requires potential buyers to pre-qualify for financing. An auction takes the seller out of the negotiation process. In an auction, the property is exposed to a large number of pre-qualified prospects.

Things to be remembered when buying a home

2008-11-17T23:32:00.000-08:00

First, thing to remember is the type of house that you want to select, should it be single house, apartment, town house or big mansion. Each type has its plus and minus, like in apartment there is no privacy and major changes cannot be done. But in case of single houses and mansions, remodeling can be done as there is more privacy. But these houses are most costly than other type. If you have kids and old people see to it there are schools, hospital and safe neighborhood. If you love gardening, check out for large yard. If you are working, then look in for a small yard. Communication and transportation is another important factor to be considered before buying a home. If any of your family members are allergic to dust, animals, chemicals, certain type of wood and other things take a note of these. If you are planning to take a pet, a yard should be your top priority. Check that the neighborhood's pets do not disturb you, and your pets do not disturb them.

What is sealed first-price auction?

2008-11-10T04:05:00.000-08:00

This is also known as sealed high-bid auction or first price sealed bid auction. In a sealed first price auction the bidders submit one bid in a concealed fashion. The bid amount is not reveled to anyone. The seller compares all the bids, and the highest bidder wins the bid and he pays the bid amount to the seller. Another type of bid is sealed second price auction. This is also known as vickrey auction. This type of auction is used at the gold exchange. A first sealed bid format has two parts-a bidding period in which participants submit their bids, and a resolution phase in which the bids are opened and the winner determined. First price sealed bid is also known as discriminatory auction when multiple items are being auctioned.

What is a reserve price?

2008-11-04T05:46:00.000-08:00

A reserve price is the lowest price at which you are willing to sell your property. If you don't want to sell your property below a certain price, you can set up a reserve price. Bidders are not told disclosed the reserve price, but bidders will see to it that your auction has a reserve price and see whether or not the reserve has been met. If a bidder does not meet that price, you're not obligated to sell your property. The Reserve price option is only visible for online auction format; it is not visible for fixed price or classified ad listings. Many sellers have found that too high a starting price discourages interest in their property, while an attractively low starting price makes them vulnerable to selling at an unsatisfactorily low price. A reserve price helps with this.

What is a multi-property auction?

2008-10-29T01:58:00.000-07:00

For a past few years many auction companies are conducting multi-property events that contain tens or hundreds of properties. First only residential auction enjoyed the multi-property auction but now commercial auction events are getting bigger. Multi property auction means a group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers. Many sellers are finding ways to sell their property, due to foreclosure problems or due to their property being stagnant in the market. Multi property auction is also called as multi-seller auction. In multi seller auction properties are owned by many sellers, offered through a common promotional campaign are auctioned in a single event. Mostly this type of auction takes place in UK.

Dutch auction

2008-10-21T03:50:00.000-07:00

In this type of auction, buyers place a bid amount they are willing to buy. In Dutch auction the price of the property is lowered until it gets a bid. The first bid made is the winning bid and results in a sale, assuming that the price is above the reserve price. This is in contrast to typical options, where the price rises as bidders compete. Many police auctions are also conducted this way. Dutch auction starts with a high price that keeps going down until the item sells. This is opposite to regular auction. Dutch auction is a type of online auctions that has become popular over the past few years. An online Dutch auction gives the seller the opportunity of listing the items only once rather than having to pay for several postings.

English property auction

2008-10-14T22:45:00.000-07:00

property auction, the property is placed up for bid and seller generally sets a reserve price. Reserve price means the property has a minimum selling price and is not known to bidders. If the auction begins below the reserve price and the auction price does not go beyond that then the property is not sold and so the transaction is not completed. After the reserve price is set, the bidding starts at a price determined by the seller. With online auction, the seller or the auction site will tell the time the auction will last. When the auction ends, the highest bidder is named the winner. English online auction can be complicated by sniping and proxy bidding. Snipers watch the auction for a number of days and do not place an order because they do not want to increase the price. On the last day, when the bidding is ending snipers will tell the price. Proxy bidding means even if the bidder is not an active participant in auction he sets a maximum bid amount in order to continue bidding. In English auction the bidders increase the value of the item because they are overly enthusiastic. The bidders desire to win the auction makes the bidder to go far beyond an items value. This can benefit the seller.

What is an REO?

2008-10-06T02:59:00.000-07:00

REO is an abbreviation for real estate owned properties. Certain definitions of REO are properties acquired by lenders through foreclosures or deeds in lieu of foreclosures. If the property is not sold at auction, it becomes real estate owned by the lender or bank. A class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.

If the property is not purchased at the trustee sale, then the home becomes an REO property, owned by the bank. The homes are not sold in a trustee sale because it is not considered a good investment for a real estate investor. A home that has been foreclosed and has become the property of the bank, a realtor is hired by the bank who will sell the property in the market. The lender will remove any liens on title, and clear all the issues that may slow down the sale of the property. Lenders want to sell the property as soon as possible, because they are in the business to lend money and not owing real estate. REOS tie up their capital reserves and hamper their ability to lend money.

Unclaimed property auction

2008-09-22T01:55:00.000-07:00

Unclaimed property auction refers to abandoned or lost property. If the owner of the property is not known for many years then that property is referred as unclaimed property. An unclaimed property name arises when it is left for a period of three to five years. Some of the unclaimed property includes stock certificates, safe deposit box contents, unclaimed security deposits, certificates of deposit, insurance payments, court deposits, utility deposits; uncashed stock and mutual fund dividends, paid up life insurance payments, dormant savings and checking accounts, insurance payments, unused gift certificates etc.

A property is declared unclaimed when the owner is untraceable or it is inactive for a period of 5 years. Some states like California, Pennsylvania, Colorado, and Nevada sell unclaimed property through online auction. Unclaimed property law protects unclaimed property until it can be returned. The state can go in for auction if the property is not claimed within 5 years.

Foreclosure property auction

2008-09-16T05:09:00.000-07:00

Foreclosure means that the mortgagee, lender, or lien holder obtains a court order of taking the property from the borrower as he has not paid his dues. Foreclosure takes place when the homeowner is not able to pay mortgage fees on the property and so he has to give back the land so that he can pay his fees. Different types of foreclosure property auction are judicial sale and power of sale. Foreclosure properties are generally seized by the bank because the mortgagor or the homeowner is not able to pay his dues. Since the bank is not able to maintain the properties they go on for foreclosure property auction. This foreclosure property can be purchased by anyone. The banker sells the property at a lower price because the former mortgagor has paid some amount. The best way to find foreclosure property auction is through local newspaper or internet.

Repossessed properties

2008-09-10T02:30:00.000-07:00

Repossessed property means the property is owned by the bank or mortgage lender. Repossessed properties can be a vacant land, residential or commercial property. If the loan holder fails to repay the loans, bank seizes the property and sells it through auctions. Banks do not tend to keep the repossessed property with them because they do not have enough money to pay for maintenance cost which is very high. So they tend to sell the repossessed property at any price they get in auction. They do not wait for higher rates.

Repossessed properties are a very good investment because they can be purchased at lower rates. Certain traders buy the property at cheaper rates, make necessary repair and sell it at higher price. Repossessed property auction is done by the government. There are certain things that have to be kept in mind like collect knowledge about the house, then bid at lower rates, then after winning the bid just check the legal documents.