House Auctions

[Lloyd90]

Anyone ever buy a house at auction?

 

My girlfriend and I will be looking soonish and auctions are something we are considering if we can get a good deal.

 

We think we might prefer a bit of a fixer upper so we can choose our own bathroom/kitchen and decorating etc, as long as the stuff there is usable whilst doing it up

 

Any top tips would as always be much appreciated

[ph5172]

Never buy without looking at it!!!!

[digger]

Get friendly with estate agents in the area you are looking in.

[spanj]

Get friendly with estate agents in the area you are looking in.

Alternatively go and cuddle a snake at your local zoo

[Danger-Mouse]

Never buy without looking at it!!!!

 

This ^^

 

And set yourself a limit and don't go above it.

 

Tough to find a bargain though.

[Lloyd90]

 

This ^^

 

And set yourself a limit and don't go above it.

 

Tough to find a bargain though.

 

Not what it used to be?

[Danger-Mouse]

 

Not what it used to be?

 

I don't think so. All those property shows on tv dragging in the amateurs, plus the professional developers. Funnily enough I was talking about this with my father the other week. He used to own his fair share of rental properties. He said he never found anything cheap at auction.

[scotslad]

I once sold 1 at auction, done ok, althou the lad that bought it lost over 10k on it in a couple of years and was only a 30K flat, was nice inside but a untidy block..

 

If a house is a genuine fixer uper u need to be getting it real cheap to have any hope of making cash on it.

Too many folk at it now, and too many folk seen a show and have no idea how much stuff costs so will bid on anything as it seems cheap with no idea of the costs involved

[Sako7mm]

Bought my current home at auction.

Have a solicitor look over the legal pack for the house you are interested in before the sale.

[Danger-Mouse]

 

 

If a house is a genuine fixer uper u need to be getting it real cheap to have any hope of making cash on it.

Too many folk at it now, and too many folk seen a show and have no idea how much stuff costs so will bid on anything as it seems cheap with no idea of the costs involved

 

QFT . . . Also you need to be handy at as much of the work as possible that will need doing. The more you can do yourself the cheaper it will be.

[Vince Green]

Too big a gamble for a property virgin in my opinion. Like cars, houses usually go to auction because there is a story. It may well be a story you can handle but the problem is you don't find out what it is until afterwards.

[Mice!]

Depends on time limits as well and how far from your house your looking to buy, my brother in law bought a house, got it cheap before it went on the market but has practically rebuilt it and its taken him a lot longer than he expected just about finished now but probably taken him a year and half.

 

Binge watch some home under the hammer they tell you what others have said read the legal pack look before you buy and know your budget.

 

Might find if you look at a different area you can get a better buy with less work needed down south lots more pennys for less house up north more house less work less money?

Good luck keep us posted

[Lloyd90]

Cheers gents,

 

I'm just weighing up options for the next few months, some valid points raised. I am hoping to buy something off the traditional market and do it up a bit.

 

The GF's father is a retired carpenter from the QE2 so has offered to be able to do work like putting in new kitchen etc

[fern01]

You will probably find there is a problem somewhere which is why it has been put up for auction or it is a way to shift slow moving houses that are probably not worth the reserve price

[button]

We sold a property at auction, got way above what was expected, the house was in a bad state but the plot was very good. Think if we had tried through an agent it would probably still be on the market because our potential buyers would not look at agents they only look at auctions

[Cosd]

If you're looking at a house that needs doing up, you need to know the cost of "doing up", otherwise you won't be able to gauge whether the house is priced accordingly.

 

It's very easy to under estimate the cost of renovation, especially if you haven't done it before.

 

As others have said, don't buy without looking, if you don't know yourself, take a trusted builder friend who can ball park costs for you.

 

 

Above all, enjoy the experience, it's probably the most expensive purchase you would have made to date if it's your first property....

[old man]

Too big a gamble for a property virgin in my opinion. Like cars, houses usually go to auction because there is a story. It may well be a story you can handle but the problem is you don't find out what it is until afterwards.

X 2

 

Too many sharks.

 

Caveat emptor!

 

Someone local just scammed by a builder, sold it very very cheap for a cash sale, allowed said builder to carry out major works to driveway, then told mortgage required. end result he lost about £50,000.

[wandringstar]

Forget auctions, everybody is there already, look for a shabby property, that has no chain, its needing a sale so those that inherited it get paid out, they often live miles away and cant be doing with the hassle, be ready with the money, go for a good discount, the asking price is always too high, be especially happy if you find one that has been 'lingering'.

[rimfire4969]

I have bought at auction a few times always done ok.

 

Go through the auction pack very carefully and get professionally help with it, that means paying for it and not Bob down the pub looking at it. If work needs doing take a builder with you to roughly estimate costs then add 20% minimum, set yourself a top limit that you will pay. 10% noramally paid on the day and the completion time scale should be in the auction pack that you will have to keep to.

 

Good luck, it's a very quick way of spending a lot of money and really gets the heart pounding.

[Dougy]

Decessed property and repos.

They would be targets.

Estate agents might at one time give a nod on potential repos, but it's a big no no nowadays.

[Lloyd90]

Decessed property and repos.

They would be targets.

Estate agents might at one time give a nod on potential repos, but it's a big no no nowadays.

 

Yes I think this is often a good way to go,

 

I have however read in the past that repo properties are often harder to get a mortgage?

[Dougy]

The only thing with repo is the bank or building society have to get as much of the dept cleared as possible, so the highest price offered, and can be taken right to the 11th hrs.

Whatever some people say about estate agents (some obviously have some previous poor experience from cowboys, then tar them all with that brush) they can be a great help to you.

[digger]

Estate agents still do it. Developer I work for gets all his refurbs that way. Got a portfolio of over 60 properties so he knows who to talk to.

[vampire]

We looked at a place along with about 40 others,every body thinks they are a builder now and its easy to make money from property,it may look like it in a rising market any fool can make a lot of money.

 

I f you can study the housing market to know which ones to buy, like a gambler studies horses

learn several trades or have mates who can or you can project manage.

Know what to buy and where,know how much or how little to do and know what the end value will be.

Know your local planning authority well

Able to finance it and can stand poss loss from auction property

 

Then you should be already doing it,if you cant then don't risk it

[wandringstar]

I think that the whole thing has been hammered so much, that the amateur has too much stacked against him, an example,

 

the house next door to me was bought after probate, a local businessman who liked a dabble and had deep pockets bought it and embarked on a total re model, adding extensions and landscaping, the whole process took about 16 months,

 

When he sold it he claimed to have made £80k, taking into account all of his expenditure and the fact he discounted it to sell it as he was in a hurry to get his money back for another project, this was considered pretty poor for all the time, effort and financial risk,

 

Well I worked it out, that he actually made nothing or even a loss, reason being, he bought in a rising market, and he forgot to factor in the natural inflation that occurred in 2014, in short, if he had bought it, locked the door, and moved it on 16 months later he would have made the same. I still don't think he realises that.