"We buy any house" vs Auction?

"We buy any house" vs Auction?

Author
Discussion

Paul O

Original Poster:

2,705 posts

182 months

Thursday 3rd July 2014
quotequote all
Thinking of selling one of my properties, but not sure I want the hassle of it being empty for years whilst it sells (all this "house price increase month-on-month" in the papers appears to be, largely, bks!).

So... for a quick sale, does anyone have experience of these cash buyers or auctions?

the property isn't a do-er upper, so which would likely net the most cash for sale?

Or does anyone know of any companies who buy/sell properties directly to investors (with tenant etc)?

Just after experience. Still in the maybe-maybe stages at the minute.

Cheers,

Paul.

P-Jay

10,551 posts

190 months

Thursday 3rd July 2014
quotequote all
"we buy any...." are never going to give you the best return, they'll want to make a chunk too of course.

I'm surprised you think it will sit for ages, based on nothing by my local area and the time between Estate agent sign going up and 'Sold' banners - most places are shifting in 2-3 weeks.

Paul O

Original Poster:

2,705 posts

182 months

Thursday 3rd July 2014
quotequote all
The area seems very stagnent. When I bought the place about 10 years ago (its a flat/apartment) there were hardly any, so were selling quickly. Plus it was the height of the boom.

However, since then, there have been literally hundreds of apartments built within about 1/2 mile of the area, so choice is huge and there are lots that aren't selling.

A neighbours place is up for sale too and is struggling. Mine is the best one in the block, so will stand a better chance than the rest, but in reality I think I'm going to have to take a hit. So if I've got to lose, if I can lose fast I'd prefer that to waiting it out. smile

Jasandjules

69,825 posts

228 months

Thursday 3rd July 2014
quotequote all
I have in mind that WBAH will give you about 75-80% of the Market rate for the property....

P-Jay

10,551 posts

190 months

Friday 4th July 2014
quotequote all
Paul O said:
The area seems very stagnent. When I bought the place about 10 years ago (its a flat/apartment) there were hardly any, so were selling quickly. Plus it was the height of the boom.

However, since then, there have been literally hundreds of apartments built within about 1/2 mile of the area, so choice is huge and there are lots that aren't selling.

A neighbours place is up for sale too and is struggling. Mine is the best one in the block, so will stand a better chance than the rest, but in reality I think I'm going to have to take a hit. So if I've got to lose, if I can lose fast I'd prefer that to waiting it out. smile
Ah, I have only been looking at houses - I can imagine flats sitting around for a while - not a week seemed to pass in the mid 2000's without a new block being built in my area to satisfy the BTL market. I know my folks bought a few and still have them.

nikaiyo2

4,670 posts

194 months

Friday 4th July 2014
quotequote all
Auctions seem to quite buoyant at the moment, some of the prices Allsop are getting for flats in Portsmouth/ Southsea seem to be slightly higher than on the regular market!!!!!

tleefox

1,110 posts

147 months

Friday 4th July 2014
quotequote all
I've been to a few auctions in Bristol lately and at one a house that was for sale on the open market a short time before for £110k but did not sell sold at auction for £145k. I've seen a couple of other similar situations.

People seem to think that by going to the auctions they are automatically getting a bargain they would miss on the open market and are getting totally carried away.

carreauchompeur

17,830 posts

203 months

Friday 4th July 2014
quotequote all
tleefox said:
I've been to a few auctions in Bristol lately and at one a house that was for sale on the open market a short time before for £110k but did not sell sold at auction for £145k. I've seen a couple of other similar situations.

People seem to think that by going to the auctions they are automatically getting a bargain they would miss on the open market and are getting totally carried away.
Interesting. What sort of percentage were they going over estimate, if any? Currently looking at a project in Brislington but looking at sold prices on the road think it's highly likely to go well over estimate at auction...

fido

16,752 posts

254 months

Tuesday 8th July 2014
quotequote all
Between the two I would rather auction. If HouseBuyer is going to give you 75%-80%, then I'd rather auction with a reserve at 80%. After that it's a straightforward property transaction(?) - I just couldn't trust a house buying company.

mcflurry

9,079 posts

252 months

Tuesday 8th July 2014
quotequote all
Why not sell your house via an EA for say 90-95% of its value?

fido

16,752 posts

254 months

Tuesday 8th July 2014
quotequote all
^ Time-wasters and silly offers. With auction, you bid you buy - cash in the bank days later.

LdnShtr

2,929 posts

242 months

Wednesday 9th July 2014
quotequote all
I've been to a few auctions recently and prices being achieved are quite strong in a surprising number of cases. I don't know what the fees are to sell by auction but I'd be tempted to give it a shot and put a reserve on at the minimum you'd be prepared to accept.

carreauchompeur said:
Interesting. What sort of percentage were they going over estimate, if any? Currently looking at a project in Brislington but looking at sold prices on the road think it's highly likely to go well over estimate at auction...
I've seen quite a lot of stuff going for double the guide price at auction. Often they're problem properties with things like short leases when I think people have got carried away but there are "normal looking" properties too. I see one of the problem flats I saw sell is actually up for auction again at the end of this month so presumably they've had the quote to renew the lease (only had 26 years left on it if I remember correctly).

Edited by LdnShtr on Wednesday 9th July 09:41

carreauchompeur

17,830 posts

203 months

Wednesday 9th July 2014
quotequote all
Interesting, thanks. I saw one recently which looked to be a great buy at the auction guide price of £140k. Total refurb required but no more than £30k's worth of work in the long run, loads of potential.

However, average sale price in the road appears to be £220k ish, and one up for £330k currently... No way that won't go above guide.

LdnShtr

2,929 posts

242 months

Wednesday 9th July 2014
quotequote all
Just treat the guide price as an indication of where the reserve is set. It may be that someone needs to sell something fast or there is something wrong with it that isn't immediately obvious so the reserve and therefore the guide price is lower.

The best example I remember recently was a small 1 bedroom flat in Kensington selling for just over £300k. Sounds like a reasonable deal but the guide price was only £160k, ridiculously cheap for that area if everything was fine. The thing was that there was only 3 years left on the lease and you can only apply to renew the lease after you have owned it for 2 years. The new owner would have to renew the lease with around a year left to run. Expensive!

Tirus

1,522 posts

119 months

Sunday 13th July 2014
quotequote all
Carr/Sam house's in Westbury Park are going to closed bids & the agents are achieveing higher than the asking price, the schools nearby are the main reason.

On the other hand Patchway is a very good place for bargains, good for Motorway & train links.

Paul O

Original Poster:

2,705 posts

182 months

Tuesday 29th July 2014
quotequote all
Thanks all for the input.

What is "EA" please that was mentioned?

How do you find out about local auctions?

Also is there a way to sell directly to investors? My tenant would probably live there for years and years and she is a great tenant. Would be good if it could be sold straight to an investor, perhaps even as a benefit as less hassle/expense in finding someone.

Thanks again!

Chris Type R

8,018 posts

248 months

Tuesday 29th July 2014
quotequote all
Paul O said:
Thanks all for the input.

What is "EA" please that was mentioned?

How do you find out about local auctions?

Also is there a way to sell directly to investors? My tenant would probably live there for years and years and she is a great tenant. Would be good if it could be sold straight to an investor, perhaps even as a benefit as less hassle/expense in finding someone.

Thanks again!
EA = Estate Agent, I believe.

Ozone

3,039 posts

186 months

Tuesday 29th July 2014
quotequote all
My guess would be 'EA' is estate agent

LdnShtr

2,929 posts

242 months

Tuesday 29th July 2014
quotequote all
Paul O said:
Thanks all for the input.

What is "EA" please that was mentioned?

How do you find out about local auctions?

Also is there a way to sell directly to investors? My tenant would probably live there for years and years and she is a great tenant. Would be good if it could be sold straight to an investor, perhaps even as a benefit as less hassle/expense in finding someone.

Thanks again!
Where are you and where is the property? The auctions I've been going to have been in Mayfair in London but they seem to cover property all around the UK. The ones I have been to are Barnard Marcus, Allsop and Savills but I'm sure there are others. Check out the most recent auction results and see if there is anything near you and if it sold. I'm sure someone will be along in a moment with some suggestions for more local auctions too.

Paul O

Original Poster:

2,705 posts

182 months

Tuesday 29th July 2014
quotequote all
Thanks all, property is based in Halifax, West Yorkshire.

Any tips for local auctions would be great so I can track them for a few months and see what sort of things are selling.

Cheers!