property in an auction

crisp

I have seen a property in an auction, but at the same time I am booked to view the property this week with a normal high street EA. I was wondering what is the usual for properties to exceed their guide price? Is it worth offering prior to auction or just wait?

david29dpo

Been there, done that. I made of offer on a flat at the agent which was turned down. Whet to the auction and got it for £5000 less! The guide price is always set low to get the punters though the door and most go for more, sometimes a lot more.

crisp

thanks for the answer. was the property viewed through the same agent as was auctioning it?

I am not sure if it makes a difference, but in my case they are two separate ones and I get the feeling, the vendor instructing both simultaneously.

Jason74

The thing you need to remember with an auction, is that generally the guide price is not actually the price the property is expected to sell for. Instead it is the price that the first bid is expected to come in at, and is usually set a margin below the reserve price. As such the sale price is almost always significantly higher than the "guide" amount.

The other thing that is of course important with an auction, is that the process works quite differently to an Estate Agents sale. Basically at auction, contracts are exchanged when the hammer falls. This means that you need to have everything in place to complete the purchase (Legal work, survey, Mortgage offer if you need one etc.) before the sale. This can of course leave you significantly out of pocket if you are outbid on the day.

crisp

the EA's price is £50k higher. I am not sure the EA knows its listed in the auction. I will raise this at the viewing.

I was planning on 10% higher than the guide, but 20k lower than the EA and seeign what happens.

david29dpo

Its most likely a repo if its for sale with an agent and up for auction. It was with Halifax EA and with a local auction house unless sold first.