Why are auctioned houses priced so cheaply, is that just the start price?

vuvuzela

caringa wrote: »

Its people like this give tenants a bad name.

It's people like that that give HUMANS a bad name. I mean !!!!!!. What utter scumbags.

theGrinch

pull in punters plain and simple. once in the room they know some people will get excited.

Fire_Fox

gayleanne wrote: »

My Son has a married couple with three kids aged between 3 and 10, as friends, this family move house once or twice a year, in the same city, the reason why they move is because they will enter a property, which is spic and span, all nicely decorated, pay the deposit, and first months rent, the Husband has a few friends with there own businesses, so he gets references easily, these are mostly private landlords, they wouldn't be able to do the same with an agency, then after the first months rent, they pay nothing, the house is a pig sty, the kids are little B%s****s they wreck the house, the garden and attempt to do the same to the neighbours gardens, they move again as soon as they have an eviction notice, leaving the landlord with thousands of pounds worth of damage, so don't rely on the house being OK if there is tenants, they might have been like those above.

Or the owner might not have had the money to do any repairs, hence that is why it is going for auction.

Why exactly is your son friends with these people? My parents would be appalled if I associated with someone with such low morals and disregard for the law, aren't you?

gayleanne

Fire_Fox wrote: »

Why exactly is your son friends with these people? My parents would be appalled if I associated with someone with such low morals and disregard for the law, aren't you?

Yes I am actually, but but at the age of 40 he is too old for me to tell him who he can make friends with.

Fire_Fox

gayleanne wrote: »

Yes I am actually, but but at the age of 40 he is too old for me to tell him who he can make friends with.

I'm hurtling towards 40 and my parents would still make their feelings crystal clear, and rightly so I was not raised like that.

YoungBusinessman

Went to 2 auctions just to see what they are like. So houses start so slow and cheap and yet end up double the price. Alot of people seem to get caught up in the excitement of bidding and cant stop. Auction buying is not for me for a good few years....

PasturesNew

If it's been tenanted for years, it's probably under one of those "for life" type of tenancies; rent was probably 3 bob a week.... and LLs tend to leave those tenants be. If the tenant is happy for everything to be old-fashioned, then the LL's happy. It might be that such a house has only become available since the tenant died and had lived in it since 1954....

dinofabio

If you get a property at the guide price you are one of the lucky ones. These are usually total wrecks, uninhabitable, that only a team of builders can put right.

If the property is in habitable condition but just rundown, there is a lot more competition and these type of properties will usually go for a lot more than the guide price.

GDB2222

JQ. wrote: »

Auctioneers deliberately put low guide prices onto properties as it significantly increases interest in them - as you've aptly demonstrated. Would you have been so interested if they'd said that the guide price was £90,000?

What they hope is that it gets lots of people into the auction room who will bid each other up. Everyone gets excited and before you know it, you've agreed to pay £102,000, great result for the vendor and auctioneer, perhaps not for you.

Despite the above, auction prices are generally lower than EA prices for a number of reasons :

• Structural problems with the property
• un-mortgageable
• legal issues
• require siginificant capital expenditure
• completion required in 28 days, 14 in some cases
• restrictions placed on future use / refurbishment by vendor
• etc etc etc

Auction properties generally have "issues" (not all, but most), so you need to make sure you know exactly what you are doing doing placing any bids. In these times of financial restrictions just getting a mortgage in time can be the biggest hurdle to overcome.

I think that this is all perfectly correct. I gave an example of a flat I had my eye on in this thread. https://forums.moneysavingexpert.com/discussion/4184831 That one went for 30% over the guide price.

gayleanne

Fire_Fox wrote: »

I'm hurtling towards 40 and my parents would still make their feelings crystal clear, and rightly so I was not raised like that.

So you are still a mummy and daddy person, you can't live your own life without asking there permission, look love from the previous postings, that you have made, I know you have to disagree or make some snide comment to posters, perhaps that is what your upbringing has brought you to. Ohhhhhhh I do feel so sorry for you at the age of 40 you still worry about what mummy, and daddy, are going to say about your behaviour. You can grow up love. ha ha ha ha ha ha, at the age of 40 you are allowed to make your own decisions you know. And find friends of your own, you don't have to worry about them finding out you know.

You are very vindictive, perhaps practicing what your parents have taught you have made you what you are!!!!!!!!!!!!!!!!!!