Buying property at auction

Author
Discussion

Wings

5,810 posts

214 months

Tuesday 16th October 2012
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Manks said:
Private buyers at auction? Homes Under the Hammer for a start. I've been asked about buying at auction twice in the past month by HOTH fans. That and would-be BTLers looking for a home for poorly performing cash.

Are there bargains to be had? Yes, if you know what you are doing and if you have enough cash to buy without a mortgage, or have an agreed facility. Those are important "ifs" though and as you might imagine HOTH makes it look a lot easier than it is in truth.

Yes, when a lot is sold prior someone has come forward with a sensible offer before the sale and the buyer has taken the "bird in the hand". The auctioneer's commission might be slightly higher if the lot goes to the room, but then it may not sell at all. Bird in the hand again.

For the amateur buyer though I still think auctions are best avoided in favour of estate agents.
^^^agree, once programs of the above type came on to the screens, then auction prices esculated. Twenty years ago i was able to buy 3 bed terraces for £30k, that was in areas where the market price was then £70k. My advice would be to make friends with several estate agents.

Dr1ve

Original Poster:

68 posts

139 months

Tuesday 16th October 2012
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Thanks guys!

vxmatt

65 posts

145 months

Tuesday 16th October 2012
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Trommel said:
I think it's the "that's a potential profit of between ... " which is missed. Big difference between the opinion of an estate agent with his best Next tie on for the telly and profit in the bank.
Not to mention that the figures need to be taken with a (large) pinch of salt.

A few months ago there was a house near me featured.

The buyer ( a private landlord) claimed to be making £550 a month rent which is the same as what the estate agents valued it at. In reality houses on that estate rent for 350-375 so clearly the figures had been inflated to make the yield look better.