I have recently seen a property in our neighbourhood on auction on the website Iamsold and the bids so far are much lower than the market price that this sparked our interest. Has anyone any experience with buying properties at auctions like on Iamsold and if so is it normal to find much lower prices than normal? Is there anything one should watch out for? (apart from the fee in addition to the house price and the fact that one would have to pay cash within approx 50 days?)
I will never buy thru them ,cannot list here why
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I hardly ever use this forum and I am not internet savvy, but in case it were possible to send private message and you wanted to, please feel free to contact me in private with any comments/advice you might be happy to share. Thanks
not going to put it out on the net Sorry
Bids will probably pick up closer to the close date. If not, the ‘reserve’ might not be reached, and it may not sell.
Just bear in mind the old saying
if it’s cheap it’s cheap for a.reason
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If its local nip and have a look best you can does any major work seem like it needs doing is there anything in the laegal packs that may prove an issue
Saw one the other day that turned out to have a tenant with a life long tenancy.
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we bought one of ours using modern method of auction and did get it BMV including sale fee, but it was a gamble that happened to pay off (we weren’t even in the country at the time!) and I would never do it again or advocate anyone do it. Bit of a minefield. We just got lucky.
Gary its a come and get me price ,to suck punters into the system
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“bums on seats”
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Buying property at auction (cars too) is like walking into a shark tank for those who go in unprepared and thinking they are going to walk away with an amazing deal. If it happens, it will be a complete fluke.
Your original message suggests you need to do a lot more background research on auctions and the property you are looking at.
I recently bought one at auction that I’m very pleased with. (A proper auction… not fee loaded modern auction nonsense). Got it approx 30% under what it might normally go for.
Properties don’t generally go to auction without a problem of some kind. So you need to find out what that problem is and figure out if you can fix it, or maybe that problem is a problem to a lender, but one you can live with as a landlord.
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I have bought with a pre auction offer and done very well on two properties. Not under this so called Modern Method. Problem with the above is that the seller does not want to pay any fees and overloads it on to the buyer. So the buyer is paying much more than if the seller would have been .charged. Apart from that I have heard first hand of how it goes wrong and you lose your upfront fee
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Yes I am beginning to think it’s a bit like the stock market unless you are a very savvy investor it’s better not to buy individual stocks thinking you re smarter than other people and you can beat the market because you probably will end up being taken advantage of… It’s better to stick to index funds. Just like it sounds better to use a traditional method to buy properties.
I did call my solicitor and he will not have the time to do the necessary checks before the end of the auction so I will not bid.
I did ask them if there is any risk of the deal not going ahead after I eventually pay the fee if I were to bid. They said that is the seller were to change their mind they would have to pay the fee and I would be refunded
And you believed them?
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Good point… I did but I guess it could be bs. They record the calls, so I guess if one lies to them one may get in trouble, but it may not work the other way round…
I have bought places with structural problems , big cracks in the wall Puts off a lot of bidders but I have fixed up a few of these and no probs after. Good value if you can sort it yourself
Hi Fraste, Buying a house on auction is a risk to say that, when i bought my property on auction, everytnig till then was good. then when my lender was asking for some documents the owner deliberately delayed in sending them, thus violating the legal term to settle the property, once they gave all the required documents, since the term (ithink it was 56 days) had passed, the owners solicitor demanded another £15K saying that the owner had to take a loan since i had not fulfilled with the auction clause, of settling the propertty within 56 days.
Now since i had already invested, i could not pull out, so was forced to make this payment.
He had another flat in the same bulding down stairs on auction at the same time, he did the same for them also. he had two gagrages for sale on auction, did the same.
So all of us fell for it.
In your case you do not know how much is your owner going to demand.