Houses from Auctions

mi-key

theoretica said:

mi-key said:

If a house is that good, and can be sold normally with a mortgage and moved into, it would be sold via an agent as it will always get more money than at auction.

Except it is not at all safe to reply on that - people tricked into thinking they are getting a bargain, and it must be cheap as it is in an auction are quite capable of bidding things up to silly money.  Perhaps especially as there are less likely to be mortgage valuations involved to pull things back to earth.  Sometimes properties are put to auction when it is speed of sale that is wanted.

True, that does happen sometimes, normally when its amateur first time 'property developers' who have watched too many TV programs about flipping houses. The builders and landlords know exactly how much its worth paying

cjdew

I have found auction properties once you add on fees and legal costs which are at times hidden in paperwork, i.e you pay for vendor solicitor etc.are barely £5k less than "normal" price and often more. This is in the lsst 2 years 

peterhjohnson

Many years ago, my parents bought a nice house at auction. The owner had died and the contents were auctioned separately later in the day. It was an enormous event - "all" the village came and some said we were crazy to buy at all, let alone at that price. The condition of the property was fine if a little dated and my father got a mortgage OK.

maydin

considering the fact that interest rates are getting higher, shall we expect further discounts on the auction final prices? Do you think that the house prices will fall?

maydin

Besides If I am to buy a property then renovate and sell, do you think that I can earn some premium above the purchased price together with the renovation costs?

ArbitraryRandom

maydin said:

Besides If I am to buy a property then renovate and sell, do you think that I can earn some premium above the purchased price together with the renovation costs?

Based on the fact you're on this forum asking that question, I'm going to say no.

Not trying to be mean, but realistically you won't make a profit as a first time auction buyer. 

MultiFuelBurner

Homes under the hammer has a lot to answer for!!

maydin

Plus as a first time house refurbisher, I still think that the actual expenses will be way over the initially budgeted

jonnydeppiwish!

maydin said:

Besides If I am to buy a property then renovate and sell, do you think that I can earn some premium above the purchased price together with the renovation costs?

As a third time house renovator, the only real reason I’ve ever made profit above £50k was the rising house market.

We didn’t set out to renovate and sell, but the opportunity came along. Luck plays a massive part of this.

As a FT renovator, add at least 100% to any monetary values you have assigned to any specific job.

maydin

Any idea where do I get cheaper building materials?