Contemplating selling at auction - any advice?

Sibley

Personally I think you have become a victim of this weeks house prices will crash propaganda. Just relax. Good homes in decent areas will never drop money. Just sit tight. Don't sell cheap and watch some vulture make money off your back. Let them save and do it the hard way like everyone else. These threads get hijacked by disenchanted renters who want to talk the market down. You try joining their forums and saying prices won't drop. You'll be banned straight away. They ought to get same treatment here.

giddypenguin

Casement wrote: »

Hi Eric,

Thanks for your comments - yes, I am well aware that a low price is the trade-off for a quick sale.

Giddypenguin - did you sell on the open market in the end, or just decide against the auction route?

Any other comments would be gratefully received.

Thanks.

Good morning

We ended up selling with our EA in the end, mostly because just after I got replies from auctioneers someone made an offer (and when that fell through shortly after we got another etc until one finally ended in a sale)

When selling with an EA, all you need is just for that one person to love it (or see a good investment) and your mostly there, that could happen in the first week, or 8 months later.

the.ciscokid

Sibley wrote: »

Personally I think you have become a victim of this weeks house prices will crash propaganda. Just relax. Good homes in decent areas will never drop money. Just sit tight. Don't sell cheap and watch some vulture make money off your back. Let them save and do it the hard way like everyone else. These threads get hijacked by disenchanted renters who want to talk the market down. You try joining their forums and saying prices won't drop. You'll be banned straight away. They ought to get same treatment here.

Lol, I liked this post. I recall something about house price falls being largest in some dump suburb of a London - I think it is called Kensington?

Out of control house prices rises have caused the debt mess we are in, so the idea that a correction in house prices being anything but a good thing is laughable. The era of banks lending crazy amounts to anything with a pulse is gone, and with that ludicrous house prices will follow suit.

As for not "sell[ing] cheap and watch some vulture make money off your back", it's all relative to home buyers. Speculators get burned when house prices fall, and this is a good thing, since they inflate the market for the people who what a home to live in. If you house decreases in price by 20%, then the next house you are buying does as well. That means you need a smaller mortgage:

Your house is 100K, the house you want is 200K, so you need an extra 100K mortgage.

If prices decrease by 20%

Your house is 80K, the house you want is 160K, so you need an extra 80K mortgage.

By my reckoning that is a good thing for people that don't want to keep handing over their hard earned money to the real vultures - EAs, Speculators, and above all Bankers!

I feel sorry for those that end up stuck, with no equity, who have been sold a lie by all the vested interests in this country. Those people with 100% interest only mortgages are not going to be able to move for a long time... but this is a lesson that the country as a whole needs to learn. For everyone else with equity, and wanting a home they will benefit from falls in house prices... such as the OP .

new_home_owner_3

Bootsox wrote: »

Yes the sellers dream, if only the OP was selling a Rembrandt or a Picasso. Fact is the market is becoming flooded with property.

I find Allsop's a useful website (google it) as it gives you access to previous auction results which can be useful for gauging the market and outcomes.

ive got a friend who invests in property to let out, he told me that he has been to a few auctions and the prices are not that cheap, infact he said a lot of the ones he has been to have gone for more or slightly less than asking price of when they was on the open market.

plus the other good thing is you can place a reserve on the property and if it doesnt reach it you dont sell.

Orpheo

Sibley wrote: »

Personally I think you have become a victim of this weeks house prices will crash propaganda. Just relax. Good homes in decent areas will never drop money. Just sit tight. Don't sell cheap and watch some vulture make money off your back. Let them save and do it the hard way like everyone else. These threads get hijacked by disenchanted renters who want to talk the market down. You try joining their forums and saying prices won't drop. You'll be banned straight away. They ought to get same treatment here.

Reading your post is a lot like watching amorous baboons at the zoo, inane but entertaining at the same time. The only difference is that the baboons aren't embarrassing themselves.

Eric1

new_home_owner wrote: »

with auctions if you advertise it right the people who want to buy it will be there, and if you get two people bidding against each other i think you will be surprised how much you will get.

You can always put a reserve on it.

new_home_owner wrote: »

ive got a friend who invests in property to let out, he told me that he has been to a few auctions and the prices are not that cheap, infact he said a lot of the ones he has been to have gone for more or slightly less than asking price of when they was on the open market.

plus the other good thing is you can place a reserve on the property and if it doesnt reach it you dont sell.

that was probably true in a strongly rising market, when your friend invested in buy-to-lets. In today's market, I cannot imagine a cash buyer stupid enough to overpay at an auction, but maybe there are some still around

Sibley wrote: »

Personally I think you have become a victim of this weeks house prices will crash propaganda. Just relax. Good homes in decent areas will never drop money. Just sit tight. Don't sell cheap and watch some vulture make money off your back. Let them save and do it the hard way like everyone else.

I like the "everyone else" bit. Does that include those who bought with 100-125% mortgages?

new_home_owner_3

Eric1 wrote: »

that was probably true in a strongly rising market, when your friend invested in buy-to-lets. In today's market, I cannot imagine a cash buyer stupid enough to overpay at an auction, but maybe there are some still around


I like the "everyone else" bit. Does that include those who bought with 100-125% mortgages?

he bought one last week and it wasnt through a auction, he said to me he has stopped bothering with repos aswell, has they are too much hassle, and whenvever he has tried to buy one, someone always comes in with a higher offer.

new_home_owner_3

Eric1 wrote: »

I like the "everyone else" bit. Does that include those who bought with 100-125% mortgages?

luckily with interest rates at a all time low these people may have a way out of it, especially now they are going onto svr's which are very low.

Plus from reports these interest rates could be staying low for a good few years.

GDB2222

Sibley wrote: »

Good homes in decent areas will never drop money. Just sit tight.

That depends on your timescale. As long as we have inflation and a growing population, I agree that eventually you'll see your price again, at least in nominal terms. However, you may have to wait a long time.

In the US, where land is more plentiful, it seems unlikely that house prices will recover to the boom levels for decades, and probably never in real terms.

In this country, people who bought at the peak of the 1988 boom had to wait until 2000 to get their money back.

In Japan, property prices have still nowhere near recovered to their boom levels of nearly 20 years.

Sibley

Reading your post is a lot like watching amorous baboons at the zoo, inane but entertaining at the same time. The only difference is that the baboons aren't embarrassing themselves.

Let me guess. You work as a Bingo caller,earn the minimum wage, belong to House Price Crash website and think your first time buy ought to be a 4 bedroom detatched house on a nice estate for about £20,000?