Are auctions really the place to bag a bargain

Drea

PD1 wrote: »

Don't worry, I knew you had a hidden agenda

So, now you've admitted your position, you surely must agree that there is a certain percentage in your auction room that don't know what they are doing.

Well, there will always be the people who don't read everything properly and realise that they do have to make their own planning enquiries, etc.

But generally, the people who bid have actually done their homework and know what they are bidding for.

There isn't anything complicated about buying at auction. You make your own enquiries for planning, you contact the solicitors for the title pack and the auction company for any further information.

We don't deliberately withhold information like some people would think, we want to be as truthful as possible to ensure that the sale actually goes through without a hitch (therefore us getting our money sooner rather than later). And the guide price is genuinely what the auctioneer thinks the property will sell for. The reserve is the start price which we don't give out, but the guide is a guess as to what it will sell for. Depending on the interest in the room, obviously, this can go for higher or lower but the auctioneer does do his best with it

PD1

Drea wrote: »

Well, there will always be the people who don't read everything properly and realise that they do have to make their own planning enquiries, etc.

But generally, the people who bid have actually done their homework and know what they are bidding for.

There isn't anything complicated about buying at auction. You make your own enquiries for planning, you contact the solicitors for the title pack and the auction company for any further information.

We don't deliberately withhold information like some people would think, we want to be as truthful as possible to ensure that the sale actually goes through without a hitch (therefore us getting our money sooner rather than later). And the guide price is genuinely what the auctioneer thinks the property will sell for. The reserve is the start price which we don't give out, but the guide is a guess as to what it will sell for. Depending on the interest in the room, obviously, this can go for higher or lower but the auctioneer does do his best with it

And those people who don't do their research end up pushing the price up to an unrealistic level - the sellers happy, you're very happy, and the buyer carrys on in ignorant bliss - until he realises he's bought a lemon.

Drea

PD1 wrote: »

And those people who don't do their research end up pushing the price up to an unrealistic level - the sellers happy, you're very happy, and the buyer carrys on in ignorant bliss - until he realises he's bought a lemon.

We're talking twice a year here, if that. Most people know what they are buying.

And most of the people that don't listen or do their research end up defaulting and we all get nothing. So no, doesn't make us happy.

I wonder if maybe you just don't know the value of a property that can be 'done up'. We recently sold a town house for £455,000, it was basically a demolision (can't spell) site but it was in the heart of the city and had a lot of potential to be worth a lot of money someday. You sometimes have to think of what something will be worth, not always what it is worth now.

And on that note, I'm off to bed

PD1

Blimey, I bet you just love HOMES UNDER THE HAMMER! ....;)

PD1

Thanks for the insight:D, I personally will be giving auctions a miss...now, I wonder where I can find some real bargains......

beegee123

Sorry to hear that cos bought our first house at auction and totally converted because:

No estate agents (amazing) so good to offer on a property and someone give a straight yes or no, no messing cos no time.

Drea is right about the speed - offered, accepted and moved in within 4 weeks (u have to tho)

You don't have to become involved in a bidding war, we waited until after the auction (they have a week to sell) and offered then.

The house we bought was originally bought in 2005 for £249,995, and we bought it at auction for £150,000 last December.

I'm for auctions - it was Alsopps.

Doozergirl

Drea wrote: »

I wonder if maybe you just don't know the value of a property that can be 'done up'. We recently sold a town house for £455,000, it was basically a demolision (can't spell) site but it was in the heart of the city and had a lot of potential to be worth a lot of money someday. You sometimes have to think of what something will be worth, not always what it is worth now.

I totally agree. A lot of auction prices might be seen to be high but many properties are perhaps in auction because there's a wider market to be reached than the usual buyers on the high street.

Thinking of the last house we sold, when we bought it, it had been on the market for quite a while in a strong market. The house itself was a bit of a mess. We paid the market rate, knocked them down a little but for what it was, people might have said we were mad. I saw the potential to the point that I was tripping over myself to buy the place in case someone else saw what I did; at auction it might have fetched more as that sort of person would have.

It took four months of looking though to find 'the' house - there's no rule to where it will be and genuine bargains are never going to be easy to find. I think ours have been 50/50 EA vs Auction.

I've found small local auctions to be the ones where people pay silly money. And I've found those same auctions falling absolutely flat over the last year or so with the same ridiculous reserves.

PD1

Drea wrote: »

We're talking twice a year here, if that. Most people know what they are buying.

And most of the people that don't listen or do their research end up defaulting and we all get nothing. So no, doesn't make us happy.

I wonder if maybe you just don't know the value of a property that can be 'done up'. We recently sold a town house for £455,000, it was basically a demolision (can't spell) site but it was in the heart of the city and had a lot of potential to be worth a lot of money someday. You sometimes have to think of what something will be worth, not always what it is worth now.

And on that note, I'm off to bed

'We recently sold a town house for £455,000, it was basically a demolision (can't spell) site but it was in the heart of the city and had a lot of potential to be worth a lot of money someday'.

I think its sad that you have to imply I don't what I'm doing, particularly when its you that doesn't know what he's talking about, in spite of working in the auction game.

How do you know that what they've bought has only limited potential due to a small footprint or the possibility of it being a listed building, or the area suddenly become run down because of it being inner city etc etc. Any property has the potential to make money someday....like in another 10, 20 thirty years any heap of !!!! will be worth loads more.' Buying property on the basis that it has the potential to make money some day sounds very foolish to me, I prefere to know why it will make money and not make vague assumptions.

PD1

beegee123 wrote: »

Sorry to hear that cos bought our first house at auction and totally converted because:

No estate agents (amazing) so good to offer on a property and someone give a straight yes or no, no messing cos no time.

Drea is right about the speed - offered, accepted and moved in within 4 weeks (u have to tho)

You don't have to become involved in a bidding war, we waited until after the auction (they have a week to sell) and offered then.

The house we bought was originally bought in 2005 for £249,995, and we bought it at auction for £150,000 last December.

I'm for auctions - it was Alsopps.

Many thanks for your input, On the face of it you appears you found a good deal and good luck to you. I do wonder though, how much success at auction is found in certain regions, I mean my experience locally has given me a distinct impression there are no bargains to be found at auction, perhaps its just my area though

Drea

PD1 wrote: »

'We recently sold a town house for £455,000, it was basically a demolision (can't spell) site but it was in the heart of the city and had a lot of potential to be worth a lot of money someday'.

I think its sad that you have to imply I don't what I'm doing, particularly when its you that doesn't know what he's talking about, in spite of working in the auction game.

How do you know that what they've bought has only limited potential due to a small footprint or the possibility of it being a listed building, or the area suddenly become run down because of it being inner city etc etc. Any property has the potential to make money someday....like in another 10, 20 thirty years any heap of !!!! will be worth loads more.' Buying property on the basis that it has the potential to make money some day sounds very foolish to me, I prefere to know why it will make money and not make vague assumptions.

I don't know what I'M talking about? :rolleyes:

Do you realise just how much a townhouse in the centre of Edinburgh would reach if it was done up? Lets just say it'd be quite a lot more than the £455k plus whatever money it would take to do it up (we were quoting around £350k).

Don't try and belittle me. You will continue to make yourself look ignorant and stupid.