A commercial property auction can provide a great opportunity to purchase commercial properties.
But, before we go any further I have to make one thing clear…
Just because it's a commercial property auction doesn't necessarily mean you're going to pick up a bargain at a rock bottom price!
Occasionally this is possible if you're looking for residential property, but as you'll find out on my Auctions page, even this is a rarity. By reading this page it will give you a good insight into how auctions in the UK actually work and why you shouldn't go to one unless you've really done your research.
Commercial property auctions are one of the most common ways to sell commercial properties, but they should never be a time for you to get carried-away.
If you're planning on attending an auction my best advice is ‘don't' unless you've fully researched the property you're intending to bid on.
Commercial properties can include all sorts of places – business parks, industrial units, offices, shops, banks and it's vital that you do your research.
You're going to want to know such things as whether there is a tenant there currently, how long their lease is, what is the loan-to-value ratio, and what is your return on investment. You can't simply assume that because you think it looks viable that it is going to be viable. This information should be readily available to you so it's important that you look into this before attending the commercial auctions.
Read my Commercial page to find out more about investing in commercial property. If you scroll down towards the bottom of that page you can read about how to determine whether a commercial property is viable.
If you're considering buying at an auction I recommend you also read my page on Commercial Property Management to read the ins and outs of managing your commercial property.