How can I Buy a cheaper home.? (Property Auctions)?

panos100m · 29 September 2007 at 7:09PM

Hi.

I can afford a max mortgage of 80k and I am looking for property auctions so that I can buy a cheaper property, possibly with need of renovations.
Does anyone know how i go about this in Buckinghmahsire / Northampton area?
Is it possible to get anything on this value ?I am lookign for a 1-2 bedroom flat/house.
Any resource about property auctions around these areas will be much appreciated.

Thanks

Doozergirl · 29 September 2007 at 11:24PM

Go to www.rightmove.co.uk, type in Buckinghamshire or Northampton and see what it gets you. Bucks gets you park homes, retirement flats and a %shared ownership. Northampton will get you some shifty looking council properties.

I woule not expect a discount of anything above 10% on an auction property and that, to be half decent/mortgageable, usually means a repo. Anything else is usually the territory of either a cash investor or it's in need of a glut more cash to make it saleable.

PasturesNew · 29 September 2007 at 11:31PM

Just a small point, if you can get a mortgage of that size on a non-repo house, it should be noted that the rules for auction buying are different.

To get a mortgage on a normal house, there's time to inform the lender and they send out a surveyor etc... but if there's a problem they might say "no" or might give a reduced value. Then what?

At auction you have to pay 10% right there and then, cash before you leave. So you'd need that money in your pocket as you set out in the morning virtually.

Auction houses usually have to have a completion date of 28 days after the auction - but any house might be less than this, so needs checking in the legal pack.

So it is a lot harder to buy a house at auction than from a normal seller because of the deposit/time constraints/risk of it not being to the lender's liking.

panos100m · 30 September 2007 at 10:19AM

Thanks for the reply, I was thinking more property auctions about repossessed homes..
I heard repossessed homes going for about 50k but havent confirmed this yet...

Doozergirl · 30 September 2007 at 12:23PM

panos100m wrote: »

Thanks for the reply, I was thinking more property auctions about repossessed homes..
I heard repossessed homes going for about 50k but havent confirmed this yet...

Er, in those areas? Yeah right. Auctions aren't bargain basements and good condition repos go for very close to their full market value.

You need to be even more savvy shopping at auction than you would in an EAs window. You can lose money if you are not careful.

Running_Horse · 30 September 2007 at 12:50PM

Depends on the area. Saw a Times article a while back saying the further north you go the fewer properties reach their reserve. Fewer southern properties are withdrawn unsold. Can't find the figures on Google.

budget_counsellor_shaz · 30 September 2007 at 9:38PM

If you look at some of the auction sites you can find out what prices the properties went for at previous auctions:-

http://www.auction.co.uk/default.asp?Auction=R

http://www.barnardmarcusauctions.co.uk/

http://www.countrywidepropertyauctions.co.uk/dynamic.php?id=results

http://www.robinsonhall.co.uk/property_list.php?groupID=0&depCode=G&ocode=BED

I hope that helps.

Shaz

How can I Buy a cheaper home.? (Property Auctions)?

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