With over 50 years of experience in selling properties in auction, and building a substantial buyer base, we have great knowledge of our different categories of buyers, along with their motivation.

First time buyers

Yes, first-time buyers do come to auction to buy their first house! Realistically for the same price as they would need for a deposit on a modern new build, they can purchase a doer-uper from auction on a mortgaged basis to get their foot on the property ladder, and then sell this within 1 year to have a much more substantial deposit or equity stake on a more suitable property. Property renovation has become much more popular in the last year, with it no longer being an intimidating “just for investors” prospect. With more people opting to put in the hard work, the auction has become more accessible and a much-preferred route for those struggling to get on the property ladder.

Mortgage in principle

Even people relying on a mortgage can purchase through auction, providing they have the deposit amount in cash. Most mortgage providers will be happy to lend on an auction property providing it is mortgageable without retentions. A buyer must show approval of a mortgage in principle before being able to bid and the seller must approve a purchase through mortgage due to lender timescales usually being slightly longer to settle than it would with a cash buyer. 

First time landlords

Probably the first types of people that come to mind when you think about property purchasers in auction are first-time landlords, looking for their first yield opportunity. These individuals are looking for a property at a fair price that can either be mortgageable or a do-er up-er again. Some first-time landlords do have the cash available to buy more prominent properties, but with the auction being a way to clearly determine the open market value of a property, those less experienced in the property industry will know that they will get a property on auction for the correct open market value. 

Established landlords

Of course for experienced and established landlords auctions are the preferred method of purchasing a property, namely modern auction due to its accessibility, ease and non constraints of location. There are no pullouts, chains, hidden issues or conveyancing problems later on down the line. These tend to be cash buyers looking for properties in a good state, that are already ready to go.

Investors 

Here, we refer to individuals with surplus cash looking to buy assets that will retain their value or even increase over time. Property is a reliable investment even in the current economic climate, property prices do not tend to decrease. Investors will also tend to let these properties out on a longer-term basis which will then allow them to earn residual income, though this is not their main reason for the property purchase.

Developers

Property developers or “property flippers” will buy several properties in a poor state, renovate them, and resell them on auction to investors or established landlords, this allows for a relatively quick profit, but they can be faced with many challenges along the way and is there for not for the feint of heart!

Multi National Investors 

Larger investment companies, such as retirement and investment funds, opt for auction as it is a way to quickly purchase reliable properties for their fund in a transparent way. 

There are many other types of property purchasers too! These include:

• Foreign Investors 
• Banks
• Housing associations 
• Businesses
• Air BNB hosts 
• HMO investors
• Property Sourcers

Want access to thousand of buyers in the categories listed above? Contact us today to get the process started.

If you want to learn about the modern online auction, see if auction is right for you here.

Call us or send us an enquiry.