Auction bargains

RHemmings

libitina wrote:

http://forum.globalhousepricecrash.com/index.php?showtopic=8189&st=100&#entry50248

A couple of people at Globalhousepricecrash have very kindly plotted some of the results from the auction.

Very interesting. A lot of properties, is it the majority, were selling at less than their last sale price. I cannot believe this would have been happening when houses were rising at 20% a year and sentiment was high.

tonyivb

Next door sold for £255k... £10k less than the last time it was up for auction, and this time it was vacant as well!

A real shabby house just across the street sold for £290k in June, it has been done-up and is now up for rent at £1500p/m

The house right next door to that is currently on the market for £330 and one down the road is up for £340

It will be interesting to see if that auction result has any effect on those prices!

RHemmings

tonyivb wrote:

Next door sold for £255k... £10k less than the last time it was up for auction, and this time it was vacant as well!

A real shabby house just across the street sold for £290k in June, it has been done-up and is now up for rent at £1500p/m

The house right next door to that is currently on the market for £330 and one down the road is up for £340

It will be interesting to see if that auction result has any effect on those prices!

Did next door sell recently, or more than a few months ago? Is the price available on the web yet? That would make a difference as to the likely effect on future sale prices.

tonyivb

It sold yesterday at Allsops (http://www.auction.co.uk/default.asp?Auction=R), it is Lot 57

Looking back, this same property sold for £195k in September 2001, but I don't know if it had the dodgy loft conversion then?

RHemmings

tonyivb wrote:

It sold yesterday at Allsops (http://www.auction.co.uk/default.asp?Auction=R), it is Lot 57

Looking back, this same property sold for £195k in September 2001, but I don't know if it had the dodgy loft conversion then?

I believe that individual property drops will have a slight downward pressure on prices. Not that every property in that road will immediately drop to that level. But it's going to take months for any such price to have any effect at all, as it will take months to appear on the LR, and then it'll be sales after that which are affected.

tonyivb

It doesn't worry us... we are currently renting and are buying in West Drayton.

I can see why it only fetched £255k though... the roof has many tiles missing, the soffits are rotton & the gutters are hanging off. A new window has been fitted to the 1st floor back bedroom, but as it was too small they have filled the gaps up with foam and left the surrounding brickwork exposed. If this was the standard of workmanship in the rest of the house then I'm surprised it's still standing!

RHemmings

tonyivb wrote:

It doesn't worry us... we are currently renting and are buying in West Drayton.

I can see why it only fetched £255k though... the roof has many tiles missing, the soffits are rotton & the gutters are hanging off. A new window has been fitted to the 1st floor back bedroom, but as it was too small they have filled the gaps up with foam and left the surrounding brickwork exposed. If this was the standard of workmanship in the rest of the house then I'm surprised it's still standing!

The person who bought it may fix it up a bit. Then later on, potential buyers deciding how much they're prepared to spend will see the value on the land registry, and see the house in its improved state.

tonyivb

I'm sure they will, and unless there is a really serious structural problem I imagine they'll make a few quid. It was been rented at £1200p/m by the previous tenants so they may try to just give it a lick of paint and stick in back in the rental market until they can work out what to do with it.

A slight digression... our street is only a small cul-de-sac and we've only lived here since last December. We ourselves replaced the previous owner in our house and we've seen four other houses get new tenants, two others are currently being refurbished and next door will be another.

I'm sure these landlords know what they are doing but I can't help thinking that oversupply may really hurt these guys soon.

libitina_2

Bump

Does anyone else have an opinion on this subject?

tonyivb

An update on next door...

Came home tonight and there is a 'For Sale' board outside... checked on the EA's website and they are asking £320k!

They then have the cheek to say that the asking price reflects that it is need of modernisation!