The short answer to this is every type.
Make no mistake however, Property Auctions are unlikely to offer the same percentage of generally uncomplicated property that would typically be found for sale through other channels such as Estate Agents.
Whether you are looking for commercial or residential property or perhaps even a plot of land, the chances are you are looking for a bargain.
In addition to standard property, that might even be being offered in parallel via and agent, auctions are more likely to contain unusual property or property being sold in unusual circumstances.
Many believe that auctions are mostly comprised of repossessed property being sold in individual or job lots by lenders looking to recoup liquidity as quickly as possible.
Although, sadly, Repossessions or 'Repos' are increasingly common at auction, make no mistake - there are traps a plenty awaiting the unwary. Also, although Repos often have low reserves, don't make the mistake of thinking all Repos are bargains.
Unusual types of Property typically sold at Auction
Properties of unusual construction or one off properties that are difficult to value such as:
- Development property
- Structurally defective property
- Un mortgageable property
- Building plots
- Barn conversions
- Thatched cottages
Properties being sold under unusual circumstances
Properties that are in need of a quick sale, are difficult to sell or perhaps even unsaleable through other channels such as:
- Owner needs to achieve a quick sale
- Repossessed properties
- Short lease property
- Derelict or in need of serious reconstruction
- Located in highly undesirable areas
- Sold with expensive legal obligations
- Subject to expensive covenants such as Local Council Repair notices
- Sold with defective legal titles
- Landlocked i.e. sold without legal access to the property
- Investment properties
- Uninsurable property
What can you do to protect yourself from buying a 'Pup'?
The sheer range of potential issues offers buyers at auction the possibility to acquire a bargain. The flipside is that for the buyers who have not conducted the necessary due diligence before the auction, any number of potentially expensive pitfalls await.
The most important thing is to know what type of auction property you are bidding on before you bid. It is therefore essential that you:
- Carry out a Home Buyers Survey
- Get a SPAR (Solicitors Pre Auction Report)
- Get a Mortgage Agreed in Principle (if you require finance)