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

mignon_2

The guide price is very often a fraction of what a house will go for, and what it will go for it what the people in the room choose to pay. I bought my house at auction, and although VERY rare, the first sale fell through (this never really happens because you pay 10% on the day, unrefundable, so the first buyer lost a hell of a lot!)

The first time it went it sold for £316k, and then the buyer pulled out, the second time we got it for £300k. But BEWARE of the auctioneers tactics, they eek you up by £500, £1000 at a time. Another house that sold on the same day went up from £250k nearly sold, to £600k in £1000 increments, because people got carried away.

We scared the buyers away by dictating our own bidding in £25k increments. After jumping up £50,000 in two minutes, no one is going to fight you because they assume you'll keep doing it, and so we paid less for the house than it is actually worth!!

Buying ac auction is scary, the first time I lost this house I was devastated, it is my dream house, and if your heart is in it, you can get carried away.

A lot of auction buyers are property developers who know what is good and know what they are doing. Scope it all out beforehand.

dory22

im looking to going to a few auctions see what they are like, my dads an ex builder, brother in law finicial advisor, 2 friends who are electrictians, my cousin works for a window fitting company, so im pretty much sorted for a team, lol