First Time Buyers Turn to First Time Bidding - 06/01/11
Auction rooms have seen a boost from first-time buyers who see bidding as a way to get on the property ladder.
On average property buyers can save up to 40 per cent* buying at auction and young buyers are turning to auction rooms to take advantage of this, says an expert from Auction Finance Limited.
Auction rooms are seeing strong attendance figures and the number of properties offered at auction last month was up 8.2 per cent compared with the previous year.**
Scott Hendry, New Business Manager at Auction Finance Limited, said:
"Obviously buying at auction is completely different from other routes to buy, but first time bidders keen to take that first step could get their hands on a real bargain. Auctions could be the light at the end of the tunnel for those believing they will never be able to invest because of the property market.
"Many first time buyers at auction rooms know they're not necessarily going to pick up their dream home, but they are going to get a good deal. This will enable them to get on the property ladder and this is what they want.
"Repossessed property at auctions, for example, can go for as little as 60 per cent of what the mortgagor originally paid; facts like this are hard to ignore."
Buying at auction can be a daunting prospect at first, but if you do your homework, you really can snap up a bargain says Mr Hendry. He advises:
"Before you go to buy, attend an auction just to get a feel for how everything works. Make sure you have funds available, do your research by ordering catalogues and make viewings with a surveyor.
"Remember, once you bid, you are legally committed to the purchase. Decide your 'walk away' price and stick to it. If it's your first time at an auction, although it can be fun, take care not to get carried away."
