Property Auctions?

[Andy M]

Our family business has managed to acquire a number of unwanted residential properties, and we're looking at the possibility of moving them on. The equity in them is such that we shouldn't get spanked if we sell them near to current market rate, and so we're looking at the possibility of auctions.

Has anybody sold property in this way before? And if so, what was your experience (amount secured/fees paid/amount of hassle)?

[trooperiziz]

Andy M said:

Our family business has managed to acquire a number of unwanted residential properties

Would the mob take kindly to you airing your business in public like this?

[rude-boy]

Simple if you can get decent bidders but you have to enter the auctions a month or more in advance ideally and in the current climate you would have to hope you don’t get a shock announcement the day before the auction as happened to one I was at last week.

As for the fees, I’d negotiate with the auction house.

You should be looking at £500+vat for the legal fees per property to get to the auction, plus a further £300ish for each HIP. You could get these fees down a little if you tried but it depends who you use.

For the post auction work the fees would be £300+vat PP.

Edited by rude-boy on Wednesday 8th October 22:18

[Zeek]

I've sold at auction this year. You have to give it a low guide price to generate interest, and set the reserve above that. If there are two people in the room that want it, you'll do ok, but you might be better renting them for a couple of years and then sending them into auction...

[Andy M]

Thanks for the advice

Approximately what percentage off the market value would you usually look to achieve?

[Andy M]

Anybody else?

[Andy M]