Previously viewed house now up for auction

[Mazdarese]

Hi all

A few months ago we went to view a house in the location that we'd really like to move to. The house was nice, but it was just that little bit too expensive and was clearly priced because of the area it lies in. We said to ourselves that if it was £x cheaper then we'd be very interested.

Well, I've just noticed that it's now up for auction with a guide price less than we said we'd be happy to pay!

Can anyone offer any thoughts on why it would go from normal sale to auction? It's been on the market for about six months and the price has never been lowered. Surely it would be easier to lower the price until you attract a buyer, rather than go through an auction? Maybe it's been repossessed? Can I find out?

I've got the paperwork for the auction and under Method of Sale it states Auction starts at 7pm prompt on 27th January 2011 unless an acceptable offer is received in the meantime. Would it be British to make an offer around the guide price before the auction takes place?

We really like the area, and if we could get this house for a good price we'd be happy to spend some money making it how we'd like it.

[condor]

From what I've seen of auctions the guide prices tend to be artificially low to get more interest.

[Mazdarese]

condor said:

From what I've seen of auctions the guide prices tend to be artificially low to get more interest.

Ah, ok. That would be disappointing if we went there with high hopes and it went sky high.

[russ_a]

Hi,

We recently found a house on around the 290k mark, it went to auction can't remember what the guide was but it sold prior to the auction for £200k

[Mazdarese]

russ_a said:

Hi,

We recently found a house on around the 290k mark, it went to auction can't remember what the guide was but it sold prior to the auction for £200k

Wowzers!

I think we'd need to act quick. Our house isn't even on the market yet though

I might give the auctioneers a call and see what the story is.

[russ_a]

We were in the same similar position when we saw that house. As we had not sold a cash buyer came straight it and brought it.

If it's gone to auction then it's usually due to the seller needing a quick sale.

[V8mate]

Mazdarese said:

russ_a said:

Hi,

We recently found a house on around the 290k mark, it went to auction can't remember what the guide was but it sold prior to the auction for £200k

Wowzers!

I think we'd need to act quick. Our house isn't even on the market yet though

I might give the auctioneers a call and see what the story is.

Then, given the timeline, I'd suggest you won't be buying it.

[Mazdarese]

V8mate said:

Mazdarese said:

russ_a said:

Hi,

We recently found a house on around the 290k mark, it went to auction can't remember what the guide was but it sold prior to the auction for £200k

Wowzers!

I think we'd need to act quick. Our house isn't even on the market yet though

I might give the auctioneers a call and see what the story is.

Then, given the timeline, I'd suggest you won't be buying it.

Realistically, you're probably right.

Look out for my "Lend me £250k" post.

[andye30m3]

condor said:

From what I've seen of auctions the guide prices tend to be artificially low to get more interest.

Completely agree, only time I looked at an auction property the guide price was 1/2 what the reserve was.

A local agent also told me to avoid it as it had some very awkward legal issues which were not going to be easily resolved, I guess they just wanted someone to make a quick decision and realise what they'd done once it was too late.

[Mazdarese]

andye30m3 said:

condor said:

From what I've seen of auctions the guide prices tend to be artificially low to get more interest.

Completely agree, only time I looked at an auction property the guide price was 1/2 what the reserve was.

A local agent also told me to avoid it as it had some very awkward legal issues which were not going to be easily resolved, I guess they just wanted someone to make a quick decision and realise what they'd done once it was too late.

Ah, the reserve. Is that something that the agency are likely to divulge if I call and ask them nicely? To give some context, the house was for sale for £300k, and the guide price is £240k.

[ColinM50]

Well bearing in mind you've still got your own house to sell,if you buy at auction normally you HAVE to put 10% down on the day and completion in 7-14 days. So I'd say you've got no chance at all of buying this at auction.

However if you go to the agent and offer say £250K, then you're in a normal house buying process where they wait for you to sell yours and it's all very gentlemanly. And I reckon this is your only possible chance of buying this property unless your Dad's loaded or you fancy a quick bank job.

Is the auctioneer the same agant as you looked at it with before? If not I'd go back to the first agent you saw it through and see if you can get some rapport going with them. After all as things stand they don't stand to make any money at all out of this sale so the agent might be prepared to get his finger out and see if he can help you. Oops, when I say "you", of course I mean himself. Silly me, fancy thinking an agent would help a buyer.

[Rude-boy]

Mazdarese said:

andye30m3 said:

condor said:

From what I've seen of auctions the guide prices tend to be artificially low to get more interest.

Completely agree, only time I looked at an auction property the guide price was 1/2 what the reserve was.

A local agent also told me to avoid it as it had some very awkward legal issues which were not going to be easily resolved, I guess they just wanted someone to make a quick decision and realise what they'd done once it was too late.

Ah, the reserve. Is that something that the agency are likely to divulge if I call and ask them nicely? To give some context, the house was for sale for £300k, and the guide price is £240k.

You will not be told what the reserve is until after the auction, if at all. Usually this is not set until the day anyway, once interest has been judged.

[Mazdarese]

ColinM50 said:

Well bearing in mind you've still got your own house to sell,if you buy at auction normally you HAVE to put 10% down on the day and completion in 7-14 days. So I'd say you've got no chance at all of buying this at auction.

However if you go to the agent and offer say £250K, then you're in a normal house buying process where they wait for you to sell yours and it's all very gentlemanly. And I reckon this is your only possible chance of buying this property unless your Dad's loaded or you fancy a quick bank job.

Is the auctioneer the same agant as you looked at it with before? If not I'd go back to the first agent you saw it through and see if you can get some rapport going with them. After all as things stand they don't stand to make any money at all out of this sale so the agent might be prepared to get his finger out and see if he can help you. Oops, when I say "you", of course I mean himself. Silly me, fancy thinking an agent would help a buyer.

Thanks for taking the time to respond.

I think you're right, I would have great difficulty purchasing at auction unless I could arrange another mortgage which I'm very reluctant to do. Even if they bank would lend me the money. Unfortunately my Dad is far from loaded!

The auctioneer is a different agency than who it was previously for sale with. I will speak to my wife now and see what she thinks, and then give the original agency a call tomorrow and see what their thoughts are with regards to putting an offer in.

I'll keep you posted.

Rude-boy said:

You will not be told what the reserve is until after the auction, if at all. Usually this is not set until the day anyway, once interest has been judged.

Ok, thanks. I was thinking it might be like Ebay I might email and see if they have a Buy It Now price.

Edited by Mazdarese on Monday 29th November 18:30