Sending a house to auction
Discussion
Any experience?
I have a rental property which the tenant has just moved out of. I put it on with an agent for sale at £299k and despite dropping the price to £279k have had no serious interest. Anybody got any experience of sending a property to auction and what % I may expect to get? Looking at the local auctioneers site it isn't the usual ex local authority buy to let ( it is a large 1760's cottage/barn conversion) but other character places do crop up and do well.
One of the reasons i don't think it is selling is that it only have a courtyard garden across which the neighbours have right of access. But a smaller (albeit more modern) property with the same arrangement up the road is on the market at £80k more and the agent is at a loss as to why we don't have much interest.
I did sell it twice at the current asking price but it fell through a week before exchange of contracts (one got cold feet the other got caught playing away from home). so i know it can sell, I just don't want another winter babysitting it and want the money out to retire.
I have a rental property which the tenant has just moved out of. I put it on with an agent for sale at £299k and despite dropping the price to £279k have had no serious interest. Anybody got any experience of sending a property to auction and what % I may expect to get? Looking at the local auctioneers site it isn't the usual ex local authority buy to let ( it is a large 1760's cottage/barn conversion) but other character places do crop up and do well.
One of the reasons i don't think it is selling is that it only have a courtyard garden across which the neighbours have right of access. But a smaller (albeit more modern) property with the same arrangement up the road is on the market at £80k more and the agent is at a loss as to why we don't have much interest.
I did sell it twice at the current asking price but it fell through a week before exchange of contracts (one got cold feet the other got caught playing away from home). so i know it can sell, I just don't want another winter babysitting it and want the money out to retire.
Christmas is coming and so is Brexit - it's not a good time to be selling houses.
What's so bad about putting another tenant in it for 12 months?
I get that you want the money out, but if you lose 10% selling at auction vs via an agent (£30K) plus the income from 12 months rent ( guess £10K - I assume you have no mortgage on the place or associated tax implications...) you'd be about £40K down.
Personally I couldn't stomach that - £40K buys a LOT of hookers 'n blow...
Notice of the easement is going to be in the legal pack at auction I presume, so unless you get lucky and some f
kwit buys it without reading the legal pack, you're unlikely to dodge the issue / obstacle the easement presents selling at auction anyway..
As for the one up the road for £80K more, it hasn't sold either??, so maybe they're just even more optimistic than your own agent.
In short, get it let for 6 months, get Xmas out the way and see what happens with brexit.
What's so bad about putting another tenant in it for 12 months?
I get that you want the money out, but if you lose 10% selling at auction vs via an agent (£30K) plus the income from 12 months rent ( guess £10K - I assume you have no mortgage on the place or associated tax implications...) you'd be about £40K down.
Personally I couldn't stomach that - £40K buys a LOT of hookers 'n blow...
Notice of the easement is going to be in the legal pack at auction I presume, so unless you get lucky and some f
kwit buys it without reading the legal pack, you're unlikely to dodge the issue / obstacle the easement presents selling at auction anyway..As for the one up the road for £80K more, it hasn't sold either??, so maybe they're just even more optimistic than your own agent.
In short, get it let for 6 months, get Xmas out the way and see what happens with brexit.
Yep.
Bought a house a few years back as an intended do-er upper, but for one reason or other ended up not doing the work and decided to sell straight away. Had to go through auctions as wasn’t suitable for a “normal” mortgage.
Worked well for us, but where we live (Bristol) there is a very successful auctioneer (the one we used) who more often than not, manage to get more for properties by taking them to auction than they would get on the normal market. I was following the auctions closely in the run up to this and there were a few properties going through that estate agents had been unable to sell which were getting more at auction than the estate agents had asked for them on the common market. People do get carried away at auctions, and lots of Joe Property Developers assume they’re getting a bargain.
Only thing I didn’t know is that auctioneers will try to encourage you to put the guide price low to generate interest, but the reserve price is has to be a maximum of 10% higher than the guide price, so there’s a fine line here.
All in all, pretty easy though and would do it again.
Bought a house a few years back as an intended do-er upper, but for one reason or other ended up not doing the work and decided to sell straight away. Had to go through auctions as wasn’t suitable for a “normal” mortgage.
Worked well for us, but where we live (Bristol) there is a very successful auctioneer (the one we used) who more often than not, manage to get more for properties by taking them to auction than they would get on the normal market. I was following the auctions closely in the run up to this and there were a few properties going through that estate agents had been unable to sell which were getting more at auction than the estate agents had asked for them on the common market. People do get carried away at auctions, and lots of Joe Property Developers assume they’re getting a bargain.
Only thing I didn’t know is that auctioneers will try to encourage you to put the guide price low to generate interest, but the reserve price is has to be a maximum of 10% higher than the guide price, so there’s a fine line here.
All in all, pretty easy though and would do it again.
tleefox said:
Yep.
Bought a house a few years back as an intended do-er upper, but for one reason or other ended up not doing the work and decided to sell straight away. Had to go through auctions as wasn’t suitable for a “normal” mortgage.
Worked well for us, but where we live (Bristol) there is a very successful auctioneer (the one we used) who more often than not, manage to get more for properties by taking them to auction than they would get on the normal market. I was following the auctions closely in the run up to this and there were a few properties going through that estate agents had been unable to sell which were getting more at auction than the estate agents had asked for them on the common market. People do get carried away at auctions, and lots of Joe Property Developers assume they’re getting a bargain.
Only thing I didn’t know is that auctioneers will try to encourage you to put the guide price low to generate interest, but the reserve price is has to be a maximum of 10% higher than the guide price, so there’s a fine line here.
All in all, pretty easy though and would do it again.
Great thanksBought a house a few years back as an intended do-er upper, but for one reason or other ended up not doing the work and decided to sell straight away. Had to go through auctions as wasn’t suitable for a “normal” mortgage.
Worked well for us, but where we live (Bristol) there is a very successful auctioneer (the one we used) who more often than not, manage to get more for properties by taking them to auction than they would get on the normal market. I was following the auctions closely in the run up to this and there were a few properties going through that estate agents had been unable to sell which were getting more at auction than the estate agents had asked for them on the common market. People do get carried away at auctions, and lots of Joe Property Developers assume they’re getting a bargain.
Only thing I didn’t know is that auctioneers will try to encourage you to put the guide price low to generate interest, but the reserve price is has to be a maximum of 10% higher than the guide price, so there’s a fine line here.
All in all, pretty easy though and would do it again.
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