Estate Agents versus Property Auction Rooms

When it comes to buying a house, whether it’s as an investment or a home, purchasers need to make the best decision that works for them financially and personally. There are a number of options out there but the two most commonly used tend to be estate agents and property auctions.

“Estate agents and auctions both have their own pros and cons,” said London Bridge based estate agency Williams Lynch. “Both can also appeal to the same buyers, depending on what position they’re in and what their requirements are.”

Estate agencies are a great choice if a first-time buyer has a lot of questions or someone is new to a particular area. However, they’re also great for investors who are looking at building a long-term relationship and are keen to hear about new opportunities as quickly as possible.

An estate agency team can hold your hand from the moment you step through their doors; they can help you pin down your real requirements and really narrow-down your search on areas and properties that would work for you. Without guidance, it can sometimes be hard to wade through the many properties that can be available when you start your search.

Of course, because an estate agency is based on face-to-face and one-to-one interaction, an experienced agent will also know when to take a less hands on approach and let the interested buyer do as much – or as little – legwork as they want to.

“Often, all an experienced buyer really wants from an estate agent is for us to negotiate on their behalf and seal the best deal possible,” Central London estate agent, LDG said.

Estate agents aren’t perfect, however, and their style doesn’t always suit every buyer out there. For instance, things can move so quickly, particularly in London, that it can be hard to keep on top of all the interested parties as much as they might want.  Also, if an agent can’t achieve the price they want then the buyers might be disappointed with their negotiating skills, even though they tried every possible way to win the deal.

Property auctions are also a great place to buy a home. You’ve got a transparent bidding process which means there’s no chance of shady dealings and you know exactly where you stand. There’s also the certainty and speed of a deal once the price has been agreed in the room and the contracts are signed and exchanged on sale day.

But, there are also a few potential pitfalls. If you don’t take the time to look over all the paperwork ahead of auction day, you can easily get caught out. This can happen if you don’t win the bid on the one or two properties you took the time to research carefully and are interested in another property at the last minute. If you win that bid you might end up with a property that looks good from the outside, but when you look within it or more closely at the paperwork, then there’s a nasty shock waiting for you. And, if you don’t go ahead with the purchase you’re likely to lose your 10% deposit.

“Auctions are transparent and quick, however, the pitfalls are potentially large,” said Lawsons & Daughters. “A 10% deposit of a London property isn’t small and the possibility of losing that isn’t a chance most people can afford to take.”

Buying a property is considerable purchase for most people, so it’s worth taking the time to research all your options and then making the choice that best suits your situation and needs.


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