Auction Properties in Manchester
Why Buy Auction Properties in Manchester?
With so many people being priced out of the southern property market, finding auction properties in Manchester is a viable alternative and could save you thousands of pounds. The future opening of the high-speed HS2 rail link will make it even more viable for long distance workers to commute to their workplace. Living in Manchester has all the benefits of a vibrant modern city with plenty of job opportunities combined with close proximity to the countryside and coast.
Manchester is also attracting a lot of interest from property investors. Over the past 5 years, property prices in the area have increased by nearly a third while it is forecast that they are due to rise by a further 22.8% by 2022. Areas such as Salford can offer particularly good value for money and are worth investigating when you search for auction properties in Manchester.
With its universities and the highest retention rate of graduates outside the capital, 60% of its population are aged 25-30. This demographic means that rental properties are in high demand and so makes the purchase of properties in Manchester a golden opportunity.
One of the main advantages of buying houses sold at auction is that the guide price supplied by the auction house can be much lower than estate agent quotes. Having said that, you should allow some leeway when setting up your auction property financing. The guide price is the auctioneer’s starting price. Rival bidders can push up the price so you should make allowances for this when deciding on a budget.
How to Find an Auction Property in Manchester
The best way to get an overview of the Manchester auction property market is through the internet. Visit the websites of both London-based and local auction houses. They include key information about how much previous houses sold at auction have gone for as well as guide prices and specs of upcoming lots.
You will need to invest some time and money in paying a visit to the city for some on-the-spot research. There is only a certain amount of information to be gleaned online. Travel around the city to get a feel for it and its different neighbourhoods. If the purchase is for your own home, draw up a list of which facilities are deal-breakers. For buy-to-let properties, you might be more flexible in what you expect.
Once you have this first-hand knowledge, you are ready to narrow down your options. Many auction houses have search parameters which allow you to choose what exactly you are looking for in terms of location, price, number of bedrooms, etc. Refining your search in this way will leave you with fewer choices.
Once you are left with a handful of properties, they need to be looked at in greater depth. You should attend one of the fixed-time viewings through the auction house or arrange a private viewing if the vendor is agreeable. If the property has sitting tenants, you would have to arrange a viewing with them.
On your first visit, take a pad to note down your general impressions. It might be a good idea to be accompanied by an expert, such as a builder, who might be able to point out any underlying problems which are not immediately apparent.
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Preparations in the Lead Up to the Property Auction
Once you have made a decision about which auction property to buy, speed is of the essence. From the publication of the catalogue listing properties put up for auction until their sale, you only have about 3-4 weeks to get everything done.
You are not legally obliged to carry out a survey when buying a property at auction. However, it is highly recommended as it might pinpoint major issues which could end up costing you a fortune to rectify.
Popular Manchester Property Auction Questions
Where can I find auction properties in Manchester?
You can find property for sale by auction in Manchester by contacting local Manchester property auction houses and explaining in advance what you are looking for. Most auctions have a catalogue of all the auction properties in Manchester which they intend to sell on a monthly basis. These catalogues will give you a good idea of the kind of properties available in the city of Manchester.
How much are auction properties in Manchester?
Manchester property auctions tend to be better value than areas in southern England and, coupled with a fairly high annual rental return, can prove to be great value for money. In recent years there has been a surge in interest in the Manchester area amongst property investors, with auction properties in Manchester high on the list of property investments.
Are Manchester property auctions good value for money?
Buying an auction property in Manchester can be one of the most prudent methods of starting your property portfolio. With a shortage of viable rental properties around the city, attending a Manchester property auction, whether online or in person, can be an eye-opening experience for any budding property owner. Contact your local auction house and find out about upcoming property auctions in Manchester.
Exercise Due Diligence Before Any Property Auction
You must also exercise due diligence when it comes to any legal issues or possible restrictive terms and conditions regarding the property sale. Legal packs can be downloaded online and need to be reviewed by your solicitor. This should be done before the auction.
Once you make the winning bid, you cannot change your mind without forfeiting your 10% deposit and possibly being sued by the vendor. It may also be prudent to use a Manchester based solicitor who is familiar with the area.
Mortgages for auction properties are available but you should check with your lender first and any exemptions. You can apply for a MIP beforehand and make the official mortgage application after you have made the winning bid. However, remember that you only have about 28 days to pay the balance outstanding on the property otherwise you lose both the property and the deposit.
How to Bid for Auction Properties in Manchester
You can bid in person, by phone, by proxy or some auctions are held exclusively online. You should have drawn up a budget so you know the maximum bid you can afford. When working this out, don’t forget to factor in all the associated costs of buying property such as stamp duty and the fees to the auction house.
Don’t be tempted to bid over this sum however much you have fallen in love with the house. This mistake might jeopardise your purchase, your financial situation and even your credit rating.
Be philosophical if you are outbid. Your dream home is out there, and you might be lucky the next time. Apart from meticulous preparation and organisation, buying auction properties also requires nerves of steel and patience. This is true for Manchester property auctions as it is for the rest of the UK.
Before bidding on auction properties in Manchester it may be wise to attend a real property auction in person. This will allow you to see how auction properties in Manchester are sold and all that is involved with a live auction process.
Buying a property at auction is not for everyone. As well as the benefits, you should also weigh up the risks and pitfalls before going ahead. If you have decided upon reflection that it suits your personality and your personal circumstances, you are ready to begin your preparations.