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Has anyone auctioned a property.


redial
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I have been left a  family members house. Which I would like to move into.

My own home is in need of complete modernisation and can't see it being an easy sell and want to avoid situations where people say they will buy only to change their mind.

 I haven't looked into auctions seriously as yet, just wondering about the pros and cons.

 Thanks for any information.

Edited by redial
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25 minutes ago, redial said:

My own home is in need of complete modernisation and can't see it being an easy sell and want to avoid situations where people say they will buy only to change their mind.

I haven't but have you asked an estate agent to give an honest opinion on your house? If it's priced sensibly it should sell no matter what condition it is.

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If I was in your position, presuming the other property is habitable, I'd move in to it and then do up the old place and rent it out.

The rental market is strong at the moment.  House prices are on the up too so, even if there is a blip in the housing market, the general trend is always upwards.  As long as you don't go too mental with spending on renovations the increase in value of the property would be far greater than the amount you'd spend on it, if not immediately then within the next year or two.

What would you do with the money from a quick sale of your house if you auctioned it?  Would that money work better for you left in the property as an investment compared to, for example, going through a financial advisor and putting it into investments?

I know a lot of people boldly proclaim there's no money in renting any more but in my experiences I can't see how that is the case.  Maybe if you want short term quick cash, but as slower-burning investments go I still don't think you can go far wrong renting out property unless you're a proper plonker about it.

Do it up nicely, as if it was going to be you living there, and aim to get it rented out for a price towards the top end of the market for the type of property.

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My opinion is that we are on the brink of a major house price crash and I would sell now to avoid that. (doesn't mean I am right but that is my belief)

Selling the house you have lived in (for more than one year) is tax free, selling the house you don't live in will be subject to capital gains. I assume it was valued when you inherited it and I would expect it to be worth more now/in real life. The difference in the two will be taxed at 18% or more. (you would need to check that as being true)

A house that needs modernising is attractive to some, either as developers or a foothold for first time buyers trying to get on the ladder.

Most houses around here sell within days and usually significantly above the asking price. A house nearby went on the market for £1m and sold quick for £1.1m, I doubt your house is a million pound property from what you say but that is the type of thing happening here across the board.

The advantage of auction is the bid is more binding than on open market but you have to have the bidders there to start with. I think speaking to an estate agent (or 3) is the best plan and see what their views are.

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33 minutes ago, 39TDS said:

My opinion is that we are on the brink of a major house price crash and I would sell now to avoid that. (doesn't mean I am right but that is my belief)

Selling the house you have lived in (for more than one year) is tax free, selling the house you don't live in will be subject to capital gains. I assume it was valued when you inherited it and I would expect it to be worth more now/in real life. The difference in the two will be taxed at 18% or more. (you would need to check that as being true)

A house that needs modernising is attractive to some, either as developers or a foothold for first time buyers trying to get on the ladder.

Most houses around here sell within days and usually significantly above the asking price. A house nearby went on the market for £1m and sold quick for £1.1m, I doubt your house is a million pound property from what you say but that is the type of thing happening here across the board.

The advantage of auction is the bid is more binding than on open market but you have to have the bidders there to start with. I think speaking to an estate agent (or 3) is the best plan and see what their views are.



Any fall in prices just results in a massive number of hopefully buyers leaping to buy, which pushes the prices back up. 
 

Demand is insane at the moment. 

 

Couple that with the lessons learned from previous housing prices crashes, I don’t think the banks etc would let it crash again. 
 

I simply just can’t see another crash. 
 

As said in previous posts. Whilst people are saying that the cost of living is getting too high, they are still able to have brand new cars on finance, spend large amount per month on mobile phones, and spend a few hundred quid each weekend on booze and dining out. 
 

There are a lot of things people can cut back on before they can’t afford to pay the mortgage. 

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29 minutes ago, Weihrauch17 said:

Auctions generally realise the lowest prices.   

I would profoundly disagree.

Auctions mean you ONLY get real buyers, not the dreamers and timewasters - the usual requirement at an auction is that you MUST pay 10% of the hammer price at the time, the sale to be completed within 20 working days. The fall of the hammer forms a legally binding contract - if the buyers pulls out then they forfeit the 10% deposit.

Yes, you may get less than the estate agent valuation, but it will realise it's real value on the day - and if you happen to get 2 or 3 people who really want it and can afford to pay over the odds, then it can do very well indeed.

I've purchased a number of properties by auction over the years, and only on one occasion have I felt that I got the property cheaply

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Auctions through a reliable and reputable auctioneer has one huge major advantage. The property is SOLD AS SEEN WITH ALL FAULTS and therefore there is no comeback from the buyer. That and you'll get your cash within, usually, twenty-eight days with no issues of being stuck in a chain or being "gazundered" where having agreed a sale the buyer then offers less that the initial price offered. The drawback as others have said is the price will usually be less and the auctioneer's commission will likely be higher than an estate agent's fees.

Legally...as I did with my late mother's house in fact...your interest in the actual bricks and mortar as a beneficiary is said to be in the value aka money's worth of the property. Therefore and this can save delays and cost the executors can sell direct to any purchaser and pay those proceeds of that sale to you. There is no need to transfer the property to you and then transfer the property (a second time) to the end buyer.

I was "lucky" (although I use that word with care given the circumstance of that "good fortune") that as my late mother was a War Widow her estate was exempt from any and all Inheritance Tax or Death Duties as the exemption from such transferred from her first husband (who was killed on military service in 1944) to her. So saving £83,000 in possible such charges. All it needed was a confirmation letter from the MoD's JCCC (Joint Casualty and Compassionate Centre).

Finally. This is important...notify the insurers that the property is empty, that it is unoccupied, that it is up for sale. This shouldn't usually affect the premium but if not disclosed to the insurers they may if there were, say, a fire walk away from paying out.

10 hours ago, robbiep said:

I would profoundly disagree.

Auctions mean you ONLY get real buyers, not the dreamers and timewasters - the usual requirement at an auction is that you MUST pay 10% of the hammer price at the time, the sale to be completed within 20 working days. The fall of the hammer forms a legally binding contract - if the buyers pulls out then they forfeit the 10% deposit.

Yes, you may get less than the estate agent valuation, but it will realise it's real value on the day - and if you happen to get 2 or 3 people who really want it and can afford to pay over the odds, then it can do very well indeed.

 

This. See my post.

Edited by enfieldspares
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5 hours ago, markm said:

Closed bids. 

Best way and you can reject the highest if you’re not happy. 

Recently sold a house and some land this way and we did reject the highest bid. It was significantly higher than the bid we did accept and was rejected on the grounds we doubted the bidders ability to pay.

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On 15/04/2022 at 23:26, Lloyd90 said:

Couple that with the lessons learned from previous housing prices crashes, I don’t think the banks etc would let it crash again. 
 

I simply just can’t see another crash.

I wonder how many times that has been said over the decades and aren't the banks the ones usually blamed?

Hopefully there won't be a crash but I think there will. Time will tell and I claim no expertise on the matter.

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10 hours ago, redial said:

Thanks, that's a new one on me

Could expand a little please.

 

Suggest what you want for it.
Ask people to put in their best and final offer. 
Bidders have no idea what has been offered and by how many people.

 

You need an estate agent who will play the game and add some drama. 

Edited by markm
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