Are auctions really the place to bag a bargain

PD1

'A lot of properties at auction are no cheaper than buying elsewhere'. That's exactly my point.

I'd rather try to find a bargain through an estate agent(or some other method) rather than having to meet their conditions, and I certainly didn't want to sell my property through one after hearing their fees.

Drea

PD1 wrote: »

'A lot of properties at auction are no cheaper than buying elsewhere'. That's exactly my point.

I'd rather try to find a bargain through an estate agent(or some other method) rather than having to meet their conditions, and I certainly didn't want to sell my property through one after hearing their fees.

Like I say, people buy/sell at auction because nothing goes to missives and it is so much quicker. Once you bid you know it is yours. It's a much easier process than buying through an estate agent.

But yes, there aren't always bargains to be had for residential.

mlz1413

I don't have a lot to do with auctions but a house near me went to auction 2 weeks back, this is a first in my area so there was a huge amount to interest.

It's guide was £95k but it was a complete wreck having been left to rot for over 20 years and then someone with very little money and no knowledge attempted to 'do it up'. Most of the auction room was filled with builders and the general thought was it was worth less than £80k as it needed at least £30k spending on it and is not a currently a mortgagable property.

It sold for £114,000 which amazed the whole room and is daft when houses in good condition are not selling at £135k - 140k.

But for the seller it must be worth the auction fees as the sale is unlikely to fall through.

poppysarah

There's enough people watching HUTH still to think it's still easy money and you can buy something without viewing it.

Doozergirl

PD1 wrote: »

Sorry Doozergirl, I thought the link was working ok, its lot 72 that caught my eye......by my maths it about 170% over the guide price....

That's why I feel that auctions are not the place to get a significant bargain.

Someone was interested in that for the long term development. Sandwiched between development it possesses more potential than a field truly in the middle of nowhere. If someone sees potential for it, they will pay over the going rate for pastureland because they're not looking at is as pastureland. They might just want to try for one house etc. or sit on it for years.

Drea

mlz1413 wrote: »

I don't have a lot to do with auctions but a house near me went to auction 2 weeks back, this is a first in my area so there was a huge amount to interest.

It's guide was £95k but it was a complete wreck having been left to rot for over 20 years and then someone with very little money and no knowledge attempted to 'do it up'. Most of the auction room was filled with builders and the general thought was it was worth less than £80k as it needed at least £30k spending on it and is not a currently a mortgagable property.

It sold for £114,000 which amazed the whole room and is daft when houses in good condition are not selling at £135k - 140k.

But for the seller it must be worth the auction fees as the sale is unlikely to fall through.

You'd be surprised. People seem to want the old wrecks rather than a house they can move straight into.

Drea

poppysarah wrote: »

There's enough people watching HUTH still to think it's still easy money and you can buy something without viewing it.

You can buy something without viewing it. Whether you'd want to or not is a different matter. A lot of residential investment properties are (or were) sold without being viewed. Mainly because it is difficult to arrange viewings when there is a tenant and the buyer is after the income.

PD1

mlz1413 wrote: »

I don't have a lot to do with auctions but a house near me went to auction 2 weeks back, this is a first in my area so there was a huge amount to interest.

It's guide was £95k but it was a complete wreck having been left to rot for over 20 years and then someone with very little money and no knowledge attempted to 'do it up'. Most of the auction room was filled with builders and the general thought was it was worth less than £80k as it needed at least £30k spending on it and is not a currently a mortgagable property.

It sold for £114,000 which amazed the whole room and is daft when houses in good condition are not selling at £135k - 140k.

But for the seller it must be worth the auction fees as the sale is unlikely to fall through.

This is a prime example of the madness that occurs at auctions. The house was like the haunted house in a funfair yet it still went above guide price! Once a bidding frenzy starts, its like a runaway train! I'm staying well away from them, they're full of nutters with money to burn.

PD1

Gorgeous_George wrote: »

Guide prices are usually set low to generate interest.

Don't you watch 'Homes Under the Hammer'?



GG

No actually, the time HUTH is on in the morning conflicts with a daily event I partake in called 'work', but I see your point.

Drea

PD1 wrote: »

This is a prime example of the madness that occurs at auctions. The house was like the haunted house in a funfair yet it still went above guide price! Once a bidding frenzy starts, its like a runaway train! I'm staying well away from them, they're full of nutters with money to burn.

Quite the opposite, they are usually full of people who are interested in only one thing and are VERY concerned about how high the price will go.

There are only a couple of people who go and think 'what the heck' and may buy something.