Buying/selling by auction

pineapple

Has anyone bought or sold a property by auction?
I think of auction properties as either run down needing renovation or being unique in some way. Am thinking of selling my current home by auction and just wondered what people's experiences were.

eddddy

Generally, 'conventional' auctions are used as a last resort - when a problem property hasn't sold through conventional EAs.

It's difficult to arrange mortgages for properties in 'conventional' auctions, so if a property is mortgageable, it will usually be better not to sell it by auction.


There's also something called 'The Modern Method of Auction' or 'Conditional Auctions'. The company that runs those charges very high fees - so a lot of people don't like them.

AnotherJoe

Why are you thinking of doing this ?

pineapple

Thanks that was useful. I would hope that my home is mortgageable. But also as a small albeit ancient cottage in a cheap-ish rural area it is nearer the bottom of the housing ladder price wise and could interest cash buyers downsizing in retirement or wanting a holiday cottage. That's why I was wondering about auction.
Also selling my last house was a long drawn out nightmare even though I found my buyer early on. I thought the auction process might be a bit more decisive.

G_M

pineapple wrote: »

Has anyone bought or sold a property by auction?

Yes. Lots of people.


I think of auction properties as either run down needing renovation or being[STRIKE] unique[/STRIKE]unmortgeaable in some way. Am thinking of selling my current home by auction and just wondered what people's experiences were.

What's your reason?


Yes, most mortgage properties have some issue maiking conventional seeling inappropriate. And they tend to go for cheaper prices as a result.


Have you googled? There are multiple guides etc on the www on how they work and why they are used.

eddddy

pineapple wrote: »

I think of auction properties as either run down needing renovation or being unique in some way.

.... just to add. If a property is unique, you could arrange with an EA to market it with a guide price and a closing date for sealed bids.

Many people will find that less scary than an auction, plus more importantly, people who need mortgages and/or have properties to sell can make offers.

(People who have properties to sell cannot really buy at auction. That would include people who are retiring and downsizing.)

pineapple

A retired neighbour of mine has just put her property on the market. She is selling to live nearer her kids and civilisation and is considering renting till she finds somewhere else. I suppose I had in mind people like her who have cash.
Plus this is a popular holiday cottage area for people with cash for second homes. In fact I bought this property for cash from a retired vicar who had had it as a holiday cottage for 25 years.

eddddy

pineapple wrote: »

A retired neighbour of mine has just put her property on the market. She is selling to live nearer her kids and civilisation and is considering renting till she finds somewhere else. I suppose I had in mind people like her who have cash.

So you're restricting your target market very dramatically (and hence reducing competition and the price you are likely to get) - just cash buyers (who are probably downsizing) and temporarily living in rented accommodation.


Would she go to a property auction room full of hard-nosed professional property developers?

And how far away is your nearest property auction? Or would she bid real-time on the internet/phone? Although, I guess you may be able to submit your highest bid to the auctioneer in advance.


She would also have to pay solicitors fees and survey fees before the auction. If somebody else outbid her, she would lose the legal and survey fees. Is she happy to take that risk?

AnotherJoe

pineapple wrote: »

A retired neighbour of mine has just put her property on the market. She is selling to live nearer her kids and civilisation and is considering renting till she finds somewhere else. I suppose I had in mind people like her who have cash.
Plus this is a popular holiday cottage area for people with cash for second homes. In fact I bought this property for cash from a retired vicar who had had it as a holiday cottage for 25 year s.

And why wouldn't people like that go to an estate agent and buy ? I bought a house for cash a few years back. I wasn't looking at auctions,why woudl I , I didn't want a place that had who knows what sort of issues. I suppose in retrospect I could have come across someone like you selling at auction for (don't take this personally) a silly reason and got it cheaper.

People buy at auctions because they think they are getting a bargain price. Which means the seller is getting the opposite.