Should I buy my commercial property at auction?

More Australians are buying their home at auction than ever before, according to CoreLogic who reported that 1 in 5 Australian homes were sold under the hammer last year.

There are a number of benefits to buying a home at auction. Generally, auction sales are quick and transparent, and there's a definite chance for buyers to get a great deal, but is the same true for commercial proprieties?

Should I buy at a commercial auction?

With auctions, the entire process is expedited because you aren't dealing with as many parties – you're simply showing up on the day and bidding. If time is of the essence, commercial property auctions might be a good option for you.

Commercial auctions can also be good for property investors who might not be as particular about a given property's specifications. Investors won't be running the business themselves, they simply need to know that a space will provide high returns. Therefore, it makes sense for them to buy at auction and worry about the details later if they knew the property is in a good location and has a number of strong features for prospective tenants.

For business owners, however, buying at auction can be more challenging. An operation's success often depends on their commercial space in a number of ways, so it's important for business owners to be especially thorough when shopping around.

Someone looking for office space, for example, won't want to buy a property quickly only to find out that the floor plan isn't quite large enough for the volume of desks, the meeting room isn't soundproof and the natural light is glaring in the afternoon.

Tips for buying a commercial property at auction

If you decide to buy a commercial property at auction, make sure you do the following:

• Research the property as much as possible beforehand – Arrange an inspection and look into comparative sales in the area. The team at Ray White Commercial Gold Coast can help with this. 
• Attend another auction first – You don't want the auction you buy at to be your first. To familiarise yourself with the process, attend another commercial auction beforehand.
• Inspect neighbouring commercial properties – For many business owners, location is everything. So before buying, check out what kind of operations are next door? Do they do a good trade? How long have they been open?
• Get a Ray White Commercial Gold Coast agent on board early – The right agent will work with you to understand your goals and help you find the perfect property.

To find out more, reach out today.