Help please - what to set as limit at auction?
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Enm1
Forumite 15 posts
We would value the opinion of the experienced posters on our dilemma...
We want to buy a studio flat in a specific complex due to location/safety/cost and there are 2 on the market. One is for sale by a traditional Estate Agent for £280000 (Rightmove property 73388560) and the other up for auction with a guide of £200000 (Rightmove property 85454363). We've seen both and they both will need updating and redecoration.
What should our limit be on auction day? We're thinking the reserve price is about £220000 (10% above the guide) and would love to get it for the reserve to allow more cash for refurbishment. Two other similar studios in the same complex are currently under offer / sold according to Rightmove and the last sale was for £275000 in January.
We are able to buy without mortgage and have attended an auction to see how the process works and know we will have to complete within 4 weeks of the auction etc.
Any thoughts on our plan? We're a bit concerned about Brexit and the housing market but want to buy the flat for our daughter who just started at University in London and will need to move out of her halls of residence next summer, so we could delay the purchase until the New Year?
PS sorry can't post links as I've just signed up having been a MSE observer for many years :j:j:j
We want to buy a studio flat in a specific complex due to location/safety/cost and there are 2 on the market. One is for sale by a traditional Estate Agent for £280000 (Rightmove property 73388560) and the other up for auction with a guide of £200000 (Rightmove property 85454363). We've seen both and they both will need updating and redecoration.
What should our limit be on auction day? We're thinking the reserve price is about £220000 (10% above the guide) and would love to get it for the reserve to allow more cash for refurbishment. Two other similar studios in the same complex are currently under offer / sold according to Rightmove and the last sale was for £275000 in January.
We are able to buy without mortgage and have attended an auction to see how the process works and know we will have to complete within 4 weeks of the auction etc.
Any thoughts on our plan? We're a bit concerned about Brexit and the housing market but want to buy the flat for our daughter who just started at University in London and will need to move out of her halls of residence next summer, so we could delay the purchase until the New Year?
PS sorry can't post links as I've just signed up having been a MSE observer for many years :j:j:j
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Just need to be disciplined on the auction day and not get carried away as we attend an auction recently and there was quite a frenzy and everyone could feel the tension in the room for some properties. Going to try and get to another auction or two to try and get used to the atmosphere :T:T (and watch all the reruns of Homes under the Hammer over the weekend :rotfl::rotfl:)
If the auction house will allow it, entering a proxy (or postal) bid would save getting caught up in a bidding frenzy.
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
Set your upper limiit to a price you know you can afford and you know you can lay your hands on within 28 days - and which you believe it's worth in the condition you see.
Then STICK TO IT. Like superglue. If the bidding goes even £1 above, get your hand down and sit on it until it's numb.
It's not necessary a case of preference. Most students have no option but to share ask one bedroom properties are out of their budget.