Auction and pre auction bids

Brinster

Hi all

We have done the silly thing of viewing a house which is in ruins and have fallen in love with it. However it's up for auction.

On at a guide price of 300-310,000. Do we want to risk going to auction and losing the house or shall we try a pre auction bid. We've been told 330,000 would be enough to consider taking it out of auction.

Then there's our house we haven't even put up for sale yet. We know the valuation and have enough equity. But I think we would have to complete payment within 28 days of sale. We could borrow 10% deposit in meantime ....
So much to consider!!
Any advice is much appreciated

Chris55_2

It's an Auction. You not only have to pay a non-refundable deposit at the time of the auction, but you then have to complete within 28 days. If it is a "wreck" then a mortgage is unlikely, so if you don't have all the money easily available then all you can do is forget about it. In the current market how long do you think it will take to sell your house? It may depend where you live, but you won't do it in time. Your only chance may be if it doesn't sell to discuss it after the auction. People normally go to auction in the hope of a quick sale, and with the best will in the world that won't be something you can provide.

theGrinch

given your situation, this is a very risky strategy. walk away.

maninthestreet

Who would pay £330,000 for a property in 'ruins'?
Unless you are a millionaire, walk away from this.

googler

You do realise you have to have the £300k in hand in order to purchase through an auction house, don't you?

Not £300k that will become available when you sell your house, but £300k available almost immediately, as stated above?