You have to be beyond mad to pay deposit for a house which you cannot finance in cash
The trick is to remortgage after you bought
I have bought a few at auction. I only ever buy when a big plc is selling or a bank repo where they have to sell at auction
Why would an end user put in auction? Reason : did not sell with estate agents
Where do you find the repo leads?
trick? Itās a simple investment decision based on the fact that youāre willing to accept much higher risk for potential higher gain. I prefer zero mortgages knowing that I face no threat from changing interest rates, voids, massive refurb bills after tenants trash the place after a lengthy eviction, etc, etc. Itās not better or worse. It simply matches my risk profile and my long-term investment aims.
Thereās no trick in this game. As with all investment, you calculate the amount of risk youāre willing to be exposed to and takes your choice.
That may be one reason, but there are many more.
For instance, I own a large portfolio in blocks and would not want streams of viewers strung out over many months umming and erring, including numerous time-wasting rubber neckers. Auctions tend to attract serious investors who realise itās a sā¦t or get off the pan scenario if they are genuinely interested buyers.
Iām not familiar with the āIAmSoldā method but as a seller it would suit me fine not to have to pay up front fees for a process that may not generate a sale if the reserve price is not met, and I would happily absorb that fee in a reduced selling price to reflect that arrangement, i.e. the fee gets paid when the property actually achieves a sale. Makes perfect sense to meā¦
I bought my biggest block in auction. Yes, the guide price is set ridiculously low to attract attention, but the savvy buyer knows what itās worth and what they are prepared to pay. I paid 90% more than the guide price and that was still 10% less than I was prepared to pay, so I got a bargain.
Do your homework, check the property on the viewing date and read the legal pack, set the figure youāre happy to pay and go for it, including fees in the case of IAS. At least you know youāve actually bought it when the hammer drops, a lot more than can be said for buying through agents.
I had a look at a 1 bed flat āauctionedā by MMA at Ā£50k, didnāt sell. Relisted at Ā£45k then dropped to Ā£40k. Agent phoned me and said I could have it for 38 I turned it down as the fees Ā£6k+ and the mortgage deposit (if arranged in time) would of bought a much better property and I didnāt want to gamble with Ā£6k
wise man to walk away from that
I would not buy one simply on the principle that I am not going to pay the fee that the seller should pay and way above anyway . You cannot believe the spiel and I hope they go bust.
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