Have you bought at auction?

samigirl

Hi everyone!

I'm wondering if anyone has bought a house at auction before, and if so, what their experiences were like.

Thank you!

wecanhelpu

samigirl wrote: »

Hi everyone!

I'm wondering if anyone has bought a house at auction before, and if so, what their experiences were like.

Thank you!

This is how not to buy at auction

http://www.youtube.com/watch?v=2NSnShgwG3U

Watch these 2 idiots bidding against each other.

hilarious

bscousegit

excellent video wecanhelpu
nothing to do with being blonde eh?

samigirl

Oh wow, that's absolutely brutal. Talk about stupid... one would think that before getting into it, they would do their research on how and how not to bid!!!!!!!!!!!

Otherwise, anyone else out there that's bought property at an auction?

wecanhelpu

Glad you enjoyed it scousegitand samigirl. brilliant isn't it?

I like it when the auctioneer cottons on to their stupidity and starts taking bids "off the wall".

They end up paying about 30k over the odds for an absolute wreck but have a mixed look on their faces-

from smug "aren't we clever little properdee developers" to

"Oh f*ck what have we done"?

Gold_Shogun

samigirl wrote: »

Otherwise, anyone else out there that's bought property at an auction?

Yes ... We've bought several over the years, and it's our preferred method as it is Fast, & can be very profitable.

We've never bothered with a Survey & have had many REAL bargains (& never a loss or break-even), but (as a family) we've been doing it for a fair while.

However, I must say I have found them to be FAR less useful in the past 2-3 years as they have become "fashionable" and severely overpopulated by "Wannabe" Plonkers with FAR more money than commonsense & who (far too often) bid WAY over the true value of the property ... In Fact, we haven't bought an autction property for some 3-4 years now for this very reason (although I think we might in the not-too-distant future )

Some tips :-

* Don't get caught up by "Auction Fever".

* Decide your Top Limit beforehand, & NEVER go more than a grand or two over it.

* Check out the Documentation (Seller's Pack) REALLY THOROUGHLY.

* Do NOT "Buy Blind" just because the property "seems cheap" ... You probably WILL regret it.

* Make absolutely sure you have funds to complete (Cash is King) WITHOUT relying on the results of a Lenders Survey, etc. (Or you risk coming unstuck, Big Time !!).

* The most successful/profitable bidding method is always aim to be the "best bottom feeder" ... And NEVER become "the leader of the pack" until the last bid or two (JUST before the fall of the hammer --> A "Fresh Bidder" WILL Scare the last bidder).

* Never "fall in love" with ANY property UNLESS you have plenty of excess money to waste / throw at it (See "auction fever")

* When viewing properties, Primarily only consider the Actual Structure, NOT the Internal Decoration and/or state of the property ... These are generally (but not always) the most profitable at the least overall cost.

* If the property/auction "Doesn't feel right" ---> RUN AWAY (as Wecanhelpu's useful video clearly demonstrates)

* Above all, remember that IF you miss out on a particular property, there will ALWAYS be Three more coming along soon
... Think of an auction as a Bus Stop on the way to where you want to get !!

* Finally ---> Don't get caught up by "Auction Fever" ...
... This is SO important it's worth saying twice (or even 100 times)

Cheers & Good Luck
Bob

wecanhelpu

A good post with some excellent advice Bob.

:beer:

samigirl

Bob, that's fabulous. Thanks for the info.

A few questions for you, slightly personal - I hope you don't mind.

What did you do with the properties afterwards, turn then into self-contained flats to rent?

On average, how much work did you have to put into each property afterwards?

Can I ask why you're planning on buying again in the near future?

When you say to check out the seller's package really thoroughly, are there any red flags that you had in mind when typing that?

Where have you been buying? I'm in London and that's where I'll be buying.

Lastly, any auction companies that you've found to be very good?

Thanks very much!! And sorry for all the questions!!

Gold_Shogun

samigirl wrote: »

A few questions for you, slightly personal - I hope you don't mind.

I don't mind, and I can always "take the Fifth" before giving away my personal little trade secrets !

What did you do with the properties afterwards, turn then into self-contained flats to rent?
No ... I personally hate flats, even though they can often be more profitable in the SHORT TERM ... I have twice bought flats at auction, but didn't really like all the extra & associated hassle, so I sold them shortly thereafter (but still doubled my money in both cases) ... I have always been in it for the long term, and Houses are definitely a much better bet overall.
On average, how much work did you have to put into each property afterwards?

Can I ask why you're planning on buying again in the near future?
Heh, heh !! ... I'd be tempted to take the Fifth usually , but let's just say that like some of the other "wise heads" on the forum, I suspect a large part of the market is just about at saturation point for stupid & unsustainable values and may well be close to a "tipping point".

When you say to check out the seller's package really thoroughly, are there any red flags that you had in mind when typing that?
Not specifically ... Most House documents / deeds / etc are very similar in reality, so after a while the "Weirdo Clauses" tend to jump out at you off the paper & grab you warmly by the throat.
... The main thing to watch out for is unusual "Covenants" (= Conditions or Limitations ---> I've come across a few "real doozies" at times) ... OR prior Local Authority actions such as Planning / Building-Regs Enforcement Notices & Closing Orders, etc ... OR Unusual Easements (= 3rd Party Rights) over the land (for example, Gas / Water / Electric wayleaves, etc).
... My advice is to either take a "Legal Guru" familiar with conveyancing with you to the auction (Best choice IF Possible), or to get a copy set for each property you're interested in for your brief to check (Though this CAN get expensive-ish).

Where have you been buying? I'm in London and that's where I'll be buying.
Ahh ! ... I'll take the Fifth as to where I buy ... I can tell you that it's NOT anywhere in or very near to London as it's currently too much of a gamble for my liking at the moment, and probably will be for some time. ... IF you really want to consider long term value for money or profitability at present, I MIGHT suggest you look North, young Lass.

Lastly, any auction companies that you've found to be very good?
That would be giving away a bit too much, wouldn't it ?
... Sorry, you'll have to find your own answer / solution for this.

Thanks very much!! And sorry for all the questions!!
... No problem, and you're welcome.

Cheers
Bob

do_it_today!

Great tips Bob
Thanks
I have thought about buying at auction but never dared as it seems very final and if you dont know what you doing you could end up getting your fingers burnt but I guess there probably are some great finds

Gold_Shogun

do_it_today! wrote: »

I have thought about buying at auction but never dared as it seems very final and if you dont know what you doing you could end up getting your fingers burnt but I guess there probably are some great finds

It IS final ... That's one of the great advantages over traditional methods --> NO Gazumping wars, NO dithering sellers changing their mind, NO lengthy or costly delying tactics by BOTH sets of solicitors (usually a straight 28 days from purchase to completion), and NO Broken Chains.

Don't get me wrong ... You can indeed get your fingers badly burned if you don't apply strict commonsense & self-control, BUT the rewards (& I'm NOT just talking about money) can be extremely satisfying.