Buying before auction

alright_dave

Hi,

I've found a property I like with a guide price of £100,000. Are guide prices what they are currently valued at on the market or just a low figure to get people interested? I'm hoping to buy it before auction but don't want to be laughed out of the estate agents like.

All tips are welcome.

bloolagoon

Most auctions I went to had reserves set at 20% over guide price.

eddddy

alright_dave wrote: »

Hi,

I've found a property I like with a guide price of £100,000. Are guide prices what they are currently valued at on the market or just a low figure to get people interested? I'm hoping to buy it before auction but don't want to be laughed out of the estate agents like.

All tips are welcome.

Hi dave

Why do you want to buy before auction? Or more importantly, what would you say to convince the seller to accept your offer before the auction?

If you're simply hoping to pay less than it would go for at auction, I think the Auctioneer and seller will see through your plan pretty easily.

G_M

Properties rarely got for guide price at auction.

alright_dave

eddddy wrote: »

Hi dave

Why do you want to buy before auction? Or more importantly, what would you say to convince the seller to accept your offer before the auction?

If you're simply hoping to pay less than it would go for at auction, I think the Auctioneer and seller will see through your plan pretty easily.

Hi, Thanks for the reply. There's no real reason for buying before auction, It's just a property I really like and I think it has a lot of potential.

The house needs about 30k worth of work on it. It's not in a live able condition. Houses in the street sell for between £130k-£150k Both houses either side sold within the last 12 months. 1 at £145k & the other at £140k. They are both bigger. extensions, bigger gardens, garages to the rear etc.

Dan-Dan

alright_dave wrote: »

Hi, Thanks for the reply. There's no real reason for buying before auction, It's just a property I really like and I think it has a lot of potential.

The house needs about 30k worth of work on it. It's not in a live able condition. Houses in the street sell for between £130k-£150k Both houses either side sold within the last 12 months. 1 at £145k & the other at £140k. They are both bigger. extensions, bigger gardens, garages to the rear etc.

Pay the seller a tempting price to avoid auction process otherwise you'll just have to take your chances along with everybody else.

You can be sure if you know the potential then others will including the seller

martindow

alright_dave wrote: »

Hi, Thanks for the reply. There's no real reason for buying before auction, It's just a property I really like and I think it has a lot of potential.

The house needs about 30k worth of work on it. It's not in a live able condition. Houses in the street sell for between £130k-£150k Both houses either side sold within the last 12 months. 1 at £145k & the other at £140k. They are both bigger. extensions, bigger gardens, garages to the rear etc.

Are you contemplating buying with cash? Houses which cannot be lived in, as they do not have functioning kitchens or bathrooms for instance, will not be mortgageable.

alright_dave

martindow wrote: »

Are you contemplating buying with cash? Houses which cannot be lived in, as they do not have functioning kitchens or bathrooms for instance, will not be mortgageable.

I wasn't aware that was a problem, so thanks for giving me the heads up for the future.

It has a working bathroom and Kitchen but it only has a sink left there. All units have been taken out but it has a point to connect a cooker.

Dan-Dan

If your buying with a mortgage you need to complete in 28 days as well i believe

Auctions are places for cash buyers really

Dogz111

You can easily complete a mortgage within 28 days. What you need to do is start the process prior to the auction, including getting a surveyor round to qualify the lend is happy to lend. You really need to be in a position of having a mortgage offer before you bid. Its a risky process but the rewards can be great. I'd check on mortgagability as I'm not sure a sink will qualify as a working kitchen

Dan-Dan

Dogz111 wrote: »

You can easily complete a mortgage within 28 days. What you need to do is start the process prior to the auction, including getting a surveyor round to qualify the lend is happy to lend. You really need to be in a position of having a mortgage offer before you bid. Its a risky process but the rewards can be great. I'd check on mortgagability as I'm not sure a sink will qualify as a working kitchen

Quite , but it takes a financial commitment up front to utilise a mortgage when buying at Auction,i dont think OP is fully aware of how auctions work judging by the posts and may not realise this