Advice: Buying at Auction

Ma77hew

Hi All,

Looking for some advice about buying property via auction.

I have found a house that I'm interested in, it's one of 3 that where previously let out, although judging by the condition it doesn't look as though anyone has actually lived in it.

It was built in 2005, and is ideal for my needs.

I'm not a first time buyer but have never bought at auction before.

The guide price is £150k - £170k, does anyone know how accurate these are?

The Land Registry Data says the house was purchase for £460k in 2005, however no houses have sold on the road for more the £350k since then, which makes me think the data might be incorrect and the price might be for more than one of the houses as there all owned by the same person.

I would be prepared to pay £280k, but can't really go any higher as I have a house at the minute and need to put that up for sale if I buy a property worth more than £280k.

Should I put in a pre auction offer? Do they work, and if so is there any kind of rule about how far over the guide price I should make it in order to secure the house.

Wondered if there were any experts out there who know some kind of secret formula.

PS Do auction properties need HIP Packs?

Trollfever

These are the results of an auction from yesterday:

http://www.barnardmarcusauctions.co.uk/Auction-Results.html
.

Ma77hew

Trollfever wrote: »

These are the results of an auction from yesterday:

http://www.barnardmarcusauctions.co.uk/Auction-Results.html
.

Thanks for the info, from a quick scan it looks like guide prices are fairly close to actual results, which would be good for me.

Will have to look through in a bit more detail later.

GDB2222

Trollfever wrote: »

These are the results of an auction from yesterday:

http://www.barnardmarcusauctions.co.uk/Auction-Results.html
.

Interesting that they have 63% sold. that seems to be about average for them. Even more interesting is that they managed to sell lot 1 for £100k. That's the worst estate in the area, and someone had petrol poured over them and was set on fire a few years ago.

Southgate man has gone on trial at the Old Bailey this week charged with murdering an 18-year-old man by setting him on fire.
Recovering heroin addict Ian Hills, 29, of Coverack Close, denies deliberately dousing John Kilkenny, in petrol and setting fire to him following a petty argument on the Strawberry Vale Estate in East Finchley on July 19.
Eyewitness Colin Surrey told the court that Hills' mood darkened after he accidentally jostled a girl on a staircase at the estate prompting a row with Kilkenny."The man walked around the corner with a petrol can in his hand and walked to where the grass bit is and threw the petrol," he said.
"It hit John's neck and face and went down to his waist. He had a lighter in his other hand and, when he lit it, it did not flame, it just sparked.
"It set alight to his waist upwards: all of him. John was screaming. He was throwing his arms around. At first I was shocked when it happened. The first thing I could think of was to take my jumper off. I went over to him and started patting him but he was too hot."
Kilkenny died of his injuries at the Middlesex Hospital 12 days later.
Hills needed police protection from an angry crowd when he was arrested two days later on returning to the estate.
The court heard that both men had been drinking when the incident happened at about 10pm.
Hills had been seen earlier that evening on the estate claiming to be buying a Lada car from a relative for his "children in the mountains".
For the defence, Anne Rafferty QC said her client swung out with the petrol can after Kilkenny called him a "hippy" but the death was an accident. The trial continues.
Converted for the new archive on 30 June 2000.Some images and formatting may have been lost in the conversion.
9:30am Saturday 23rd May 1998

GDB2222

To the OP, are you seriously going to double up your property ownership at a time that prices are dropping at the rate of 2% a month?

Trollfever

Lot 1 sold for £100k. I am not sure if this is the same flat:

1.06/12/2004£175,000FlatLNo132, Old Farm Road, Barnet, London, Greater London, N2 9RQ

2.13/12/2001£54,000FlatLNo132, Old Farm Road, Barnet, London, Greater London, N2 9RQ

GDB2222

Trollfever wrote: »

Lot 1 sold for £100k. I am not sure if this is the same flat:

1.06/12/2004£175,000FlatLNo132, Old Farm Road, Barnet, London, Greater London, N2 9RQ

2.13/12/2001£54,000FlatLNo132, Old Farm Road, Barnet, London, Greater London, N2 9RQ

Sure looks like it! Look at this one:
March 2007
11 Old Farm Road,
Barnet,
London,
Greater London,
N2 9RE £215,000
Flat
Leasehold
Not New Build

Ma77hew

GDB2222 wrote: »

To the OP, are you seriously going to double up your property ownership at a time that prices are dropping at the rate of 2% a month?

This post isn't really about house prices, or the current housing market, but to answer your question, Yes.

I bought my current house in 2002 and haven't mew'd, the deposit for the new house is being put down from cash, so I'm taking the opportunity to move up the property ladder on a house that I will probably get at 2003/4 price levels, although it may be better than that as I've just realised that some houses have sold for £450k on the road, so tonight I will go an see which ones they were to try to compare them to this one.

This means I will be in a position to sell my house at 2003/4 price levels without being financially affected at all, and if I can't then I can afford both mortgages or rent my old one out (current rent would cover current mortgage although this could change).

I bought the first one when I was 19 and my salary has trebled since then.

Different people in different positions will make different decisions, but I believe house prices would need to fall by another 25% for me to be able to buy a similar property at the same price, this could take another 12-24 months, so why wait?.