Houses 'can be bought cheaper at auctions'

For those who watch plenty of daytime television, the BBC show "Homes under the Hammer" is something you may be familiar with.

The show chronicles the efforts of people rennovating houses they bought at auction, starting with the bidding process and finishing with a guided tour of the newly-decorated property.

The practice of property development has been in decline since the start of recession and doesn't look like pulling out anytime soon, but many people still looking for a bargain property still regularly attend property auctions.

In many cases, houses can be sold for 25 per cent less at auctions than through estate agents, meaning that if you're looking to trade down and move somewhere a little more suitable you could save a lot of money.

Fathom Financial Consulting and Zoopla said demand for this type of selling can be high both on and offline.

Commenting on the data, the Essential Information Group (EIG) said the reason for the differences in price can be down to condition of the properties and the kinds of people selling.

It stressed when analysing the data, it is important to make sure the same types of properties are being compared.

Those choosing the Bargain Hunt-style route can often be people who do not live in the dwellings.

Refurbishment is also sometimes needed in these, founder of the organisation David Sandeman remarked.

"Generally, properties sold through estate agents are modernised and generally at auction they are not," he claimed.
A quick sale could be one of the reasons this route is chosen, Mr Sandeman concluded.

If you are buying a property at auction make sure you weigh-up all of the pros and cons. In most cases, auctioned properties will need a lot of TLC which can often run into thousands of pounds.

It is also a safe bet to hire an experienced property developer and estate agent to test whether the build is up to scratch. Small cracks in walls can soon lead to giant chasms that threaten the structural integrity of the building, so ensuring that you're not buying a ticking time bomb is important, to protect yourself financially.

People considering buying a house could have a property investment Q&A with a specialist in the area.

If you would like to view search results for Property Auctions click here.