Price Drop

jimbog

Any developments OP?

ReadingTim

Firstly, what sort of auction is this? The auction agent sounds rather proactive - are the words "modern method of auction" mentioned? If so, run a mile.

Secondly, do you need a mortgage on this place? Because if you do, you might need to check you can get the funds together within the timeframe for payment in a normal auction.

mimi1234

Hi,

Sorry for the delay. No further movement.

I won't need a mortgage as I have been meaning to move out for a long time and have more or less enough to buy it outright if the price was right for me. No further emails or any contact.

Why is "modern method of auction" that bad?

I saw another property which I phoned up about. Again, it is via an auction so I asked the EA how it worked if I wanted to place an offer to buy it and not go down the auction route. I had it all wrong!!! I thought my offer would be the amount I was willing to pay and that was that. Apparently, it's my offer with an auction fee on top which I was told was about £7K on this other property I had seen. Sod that!

I will keep looking. Hopefully something will turn up in due time.

Thanks again all.

davidmcn

mimi1234 wrote: »

Why is "modern method of auction" that bad?

Because:

it's my offer with an auction fee on top which I was told was about £7K

and the estate agent keeps that even if you can't proceed with the purchase, or e.g. find out during your due diligence that there's something wrong with the property.

johnathan45

davidmcn wrote: »

Because:


and the estate agent keeps that even if you can't proceed with the purchase.

Neither the vendor nor the buyer benefits in a 'modern method of auction'. But the estate agents make a killing.

mimi1234

Price dropped a further £10K now. I got another email yesterday. How strange when they supposedly had a cash offer for a lot higher!

RelievedSheff

Make them an offer that you feel is fair for the property and leave it on the table.

I would still be looking at other properties though.

John_Smith_2019

I would not consider buying a property at auction, unless I had plenty of cash and knowledge and experience.
By plenty of cash, I mean the purchase price plus double the renovation costs.
So to purchase a house for £100k and an estimated £50k to renovate it, I would want at least £200k in my bank - without any debt.

The reason is that many auction properties don't just have hidden structural problems (eg subsidence, Japanese knotweed etc). They also have legal problems (access, disputed title etc).

Unless you are a property professional (eg builder, solicitor, surveyor, etc) or have lots of experience and cash - I would be careful.

AdrianC

mimi1234 wrote: »

Price dropped a further £10K now. I got another email yesterday. How strange when they supposedly had a cash offer for a lot higher!

I thought it was going into an auction?

When's the auction?

justjohn

John_Smith_2019 wrote: »

The reason is that many auction properties don't just have hidden structural problems (eg subsidence, Japanese knotweed etc). They also have legal problems (access, disputed title etc).

.

No lol


Many have legal packs (info on deeds,surveys etc). If you get one, read it and give to you solicitor before auction.


Some properties will have been advertised with EA's for a while. And most of the info you get from EA's will be included.


A very very small amount of properties will have no info on them and you would have to collect data. These are very rare now. And many auctions guarantee you will get clean title.