Very cheap house at auction - tempted

Guy_Montag

There's a house near me that was in the last local auction with a guide price of 35k to 65k. This is between 25% & 50% of the price of a similar nearby* property on Rightmove.

Ok, this screams "Danger! Will Robinson", on t'other hand I could buy it (at least at the lower end) mortgage free & it just needs to stay upright for ten years to be cheaper than renting. I'm fairly hardy, I can put up with a tarp over the roof if that caves in. Pretty sure I could cope with putting a plank or a zipwire across any holes that open up due to mine workings**. The only problem is if it pulls next door down (it's end terraced).

It looks like a Beeney-disaster, all laminate flooring & neutral colours & totally the wrong style for the location. My guess is it's been repo'd & being sold at auction by the mortgagees.

So should I even consider it? Should I walk away now? Should I go have a look? What should I ask the estate agents? Which act of parliament should I mention to discourage them from deliberately misleading me? Is there any point in getting a survey? a structural survey? or am I better using my common sense/educated, informed opinion (& a piece of lead on a string) to judge if it's likely to be still standing in six months time.

*The similar property is slightly larger, but about 50 yds up the same road.

*The bonus being I could get to spend evenings & weekends exploring disused mine-workings looking for dragons/treasure etc.

Badger_Lady

By all means, consider it, but remember that guide prices are usually set much lower in order to attract buyers - more buyers, more bids, higher sale price.

If you're genuinely interested in buying it (and you should thoroughly check it out first), you need to set a maximum price you'd be comfortable paying and stick to it (harder than it sounds).

Chances are, if you've seen a "bargain", so will everyone else and the price will gradually creep up and up in the auction room. You will then be tempted to bid "that little bit more" too, as part of the auction adrenalin rush.

On the other hand, the market's slow at the moment and you could pick up a bargain. You don't know unless you try.

pinkshoes

I'd say go for it, but set yourself a maximum price you're willing to bid, and take along a friend who will restrain if/when the bidding gets above this price!

Prices are often set low to gather interest, so potentially it could go for ALOT more money, but if not, bid and enjoy!

sooz

Get a full survey.

It's in an auction for a reason.

Guy_Montag

You are both right that guide prices are set low (in fact I'm sure I saw the lower one in one case set below the reserve, though the details elude me).

This place failed to sell at the last auction & is coming up again.

I'm Scottish, I find the idea with parting with money quite painful, (shakes, sweating, going very pale - that was just for an expensive holiday), I'm unlikely to get into a bidding war.

lynnexxxo

Remember if you do bid and win you need 10% deposit on the day and the balance max 28 days later. Else they keep your 10% deposit.

Good luck

epz_2

if you get it cheap enough then its better than renting so you cant lose, even depreciating it to zero which wouln't happen.

Ive only been to one auction and frankly the prices weren't anthing special considering you need to get the survey with no way to know if you will win, not to mention the 28 days to finance it.

have you asked the EA if there is anything up with it, if its just been !!!!!! decorated then it can be sorted pretty simply.

check if its a repo or if they are open to offers rather than going to auction, could save some hassle since you will be in a position to proceed at short notice but know before you blow cash on surveys etc.

Guy_Montag

epz wrote: »

if you get it cheap enough then its better than renting so you cant lose, even depreciating it to zero which wouln't happen.

Ive only been to one auction and frankly the prices weren't anthing special considering you need to get the survey with no way to know if you will win, not to mention the 28 days to finance it.

have you asked the EA if there is anything up with it, if its just been !!!!!! decorated then it can be sorted pretty simply.

check if its a repo or if they are open to offers rather than going to auction, could save some hassle since you will be in a position to proceed at short notice but know before you blow cash on surveys etc.

:rotfl:

You make me laugh, having read a fair few of your posts, I can see we're both coming from the same point of view.

It is pretty "!!!!!!" , looks like they ripped out the original fireplace to put in an ugly thing stuck on the wall thing & they stuck a radiator over the feature wood paneling, but as you say this can be fixed for little cost. The cheap, badly-fitted laminate can be ripped up & replaced.

Think I'll start with a drive past later this week, check that it looks vaguely straight & have a look for major works / brothels / opium dens / wine-bars & undesirables.

barnaby-bear

Guy_Montag wrote: »

:rotfl:
Think I'll start with a drive past later this week.... have a look for major works / brothels / opium dens / wine-bars & undesirables.

Why do I suspect these are things you'd count as positives in a neighbourhood....

Doozergirl

Was it local auction or national? The nationals often show the reserve and the last bid on their websites. If it's a repo, I'd expect it to be a big auction house. Nowt wrong with trying to extract the same bidding info from a local agent. If it's just !!!!!! (love that!), vaguely modern and not run down then it probably is a repo.

You're looking for structural problems and sniffing for damp, though if it's going to fall down a shaft, then it still might not show any signs of being about to do so! If it is a mining area then you need a mining search. Someone with a head for houses needs to look over it before you buy it.

Freehold? Get a solicitor to look over the legal pack. Get it sent to you first, see what's in it. Thing is with auction properties and legal packs is that things are often conspicuous by their absence

Guy_Montag

Bah looks like it's all academic, the auction result has changed from available to sold @ £65k & the advert has changed to under offer (though it's still listed in the forthcoming auction catalogue).

I'll give them a call later in the week to see what the status really is.

The auction was a local one, well regional anyway it may have been a last desperate attempt to flog it before the bailiffs came round.