Have you bought at auction?

Gold_Shogun

Gold_Shogun wrote: »

Whoops, Sorry Samigirl. I just noticed that I accidentally skipped over one of your queries, so I'll fix that here :-

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

Answer = A LOT of Work, and not all that much extra money ... But very little relative to the increased value of the overall finished property.

If you knew how little I paid for my last purchase just 4-5 years ago, and what it is worth now, you would probably cry. ... I Firmly believe that almost ANYBODY can buy their own house IF they are willing to adapt enough to make it happen ... I wasn't born rich, and have never inherited anything, and I enjoy being an underestimated (but cunning) Peasant.

Cheers
Bob
:beer:

Gorgeous_George

I have a friend who bought a BIG house in Somerset at auction during the last pricing collapse. He said it was the biggest buzz of his life.

The nearest I came was buying a house days before it went to auction.

Great tips Bob.



GG

samigirl

Brilliant.... thanks so much for all of your tips, Bob! Definitely something to look into for me at the moment, have started ordering catalogues of the available lots, it's very exciting!!

Thanks again

Gold_Shogun

samigirl wrote: »

Brilliant.... thanks so much for all of your tips, Bob! Definitely something to look into for me at the moment, have started ordering catalogues of the available lots, it's very exciting!!

Good Luck !! ... and just remember not to get carried away at the auctions.

:beer:

Doozergirl

Gold_Shogun wrote: »

If you knew how little I paid for my last purchase just 4-5 years ago, and what it is worth now, you would probably cry. ...

To be fair, virtually anyone can say this about a house they bought that long ago. The key wasn't to what it is worth now wasn't buying at auction - the immediate profit you made is far more relevant.

But anyway...

My rule is to stop bidding by the time the last guy with paint on his trousers stops bidding

You must have a solicitor look over the auction pack for you, especially if you haven't bought before - you don't know what you're looking for. Sometimes you'll get a great bargain, other times there are real reasons why a property is at auction (ie. you will not be able to obtain a mortgage!)

If a house looks to be slightly unorthodox, you must delve deeper for planning permission, building regs etc.

The thing that makes auction so quick is that you sign contracts on the day. Whilst that means a quick completion, it also means that you do not have thorough opportunity to go through the usual conveyancing channels, or, if you do, you must be prepared to lose the cost of solicitors and surveys if you don't succeed in being the highest bidder.

Go to auctions before you plan to bid to get used to it, do watch for bidding off the wall as it does happen - you need to situate yourself well in the room to see (my favourite place is standing against the wall in the middle of the room - easy to see hands in front of you and blank faces and knowing looks behind )

When you do bid, it's probably best to have something to lean against. It's hard to hear the auctioneer against the sound of your heart racing!

It's the price of a property that is good, not auction houses, IMHO. There's a super list here: http://www.property-investor-news.com/auctions.htm