First time property auction buyer helpppp

x1x1

Hey guys

Recently my partner and I decided we would put our savings to good use, which is in the region of 40-50k. We are renting right now down south, and even with our savings, we cannot get a mortgage for a property down here due to our self-employment (I dont want to get into this, we cannot get one .

We are now looking at buying somewhere elsewhere in the country within budget, and being a keen DIY'er I dont mind getting stuck into a renovation. We want to buy somewhere cheap, "do it up" and flip it. Until we have enough money (hopefully) to move back down south.

Now, I'm looking on a property auction site and have seen a property in an area i know up north, with a guide price within our budget, just. It needs an overhaul which is fine, and a bit of research shows there is a good chance of a decent profit at the end of it.

The auction for it is next month, question is:

Is the guide price set as a starting bid, or some kind of expected selling price?

Is it usual for buyers to make an offer before auction?

I probably have more questions but will try to google in the meantime!

Any help appreciated.

Stef__x_2

Hi

Me and my partner also first time buyers are currently buying a property under auction terms, we actually put an offer in which the seller accepted before it went to auction (we had too pay a fee)

Also the starting bid is usually around 20% lower than what most sellers want, not sure how true this is but we viewed a few properties before the one we settled on and got told this by all the estate agents.

Hope this helps

x1x1

Thank you, thats good news then, I wont feel like a dork phoning up to ask the agents

Could you divulge the fee? would be handy for reference

Did you try making low offers on propertys on the market, rather than auction too?

Stef__x_2

It all depends on the price of the property and if the estate agents charge this fee I think it's only just being introduced, I've just remembered part of our fee was too secure the property so it was took down from the website too, you might be looking at around 10% but this comes off the property sale price if that makes sense? So it won't come out if the deposit you give to your lender.

Yeah it's best to put a silly offer in in my opinion, it will depend how desperate they are to sell the property, usually if they've been sent to auction they generally want rid. Even if they reject your first offer you then know that you have a bit room too go a bit higher, make sure you let them know when it's your final offer as they turned our final offer down then came back and accepted, hopefully you'll be as lucky as me and my partner

blackshirtuk

The guide price is to attract buyers, they would expect the price to go 10-20% higher

Yorkie1

Make sure you get a survey done and the legal pack reviewed by a solicitor before the auction - once you've won the auction I think there's no backing out.

Also there is frequently a short timescale for completion after the auction. Make sure your solicitor and lender are lined up for this. It is not for the faint-hearted.

x1x1

No lender fortunately, but i will take the legal advice on board thanks