Houses For Auction.

[kat-kin]

Im thinking of downsizing to a small bungalow and spotted one near my daughter a few weeks ago. I rang the agent who said the place was going to auction and also that a lot is involved with "auction houses" so I left it. My daughter rang me last night to say the house is back on the market with a new agency and a £1,000 cheaper. Can someone tell me why houses go to auction? The place needs updating btw. Thanks.

[Igor61]

It could simply be that the previous agent might not have marketed the bungalow the way the owner wanted or didn't have much luck attracting potential buyers as it needs some updating, perhaps it wasn't successful at auction either or was withdrawn from the sale and the owner has simply changed agent. If the house is what you want and you can finance the work needed to update it go for it! It's near your daughter and it might just be what you are looking for. Good luck.

[237SJ]

Sometimes people just want a quick sale. For example, the owner has died and the beneficiaries want to get a done and dusted deal so that they can divide up the spoils. Sometimes it`s a property that needs a lot doing up and sometimes it`s somewhere so unique (we had one of those down the road here not too long ago) that it is just impossible to price.

[kat-kin]

Thanks to both of you for your input. The place is empty and from the 6 pictures shown it certainly does need work done on it but its in a lovely spot but I don't know exactly what else needs doing so the best thing is for me to view it and decide from there. If it failed to sell at auction I'm a bit sceptical about it. I thought maybe the previous owner/owners may have died too. Thanks again,much appreciated!

[Shelleybob83]

Hi, If you're based in the UK (or you can watch BBC1) then Homes Under the Hammer is a great programme to watch to get an idea on how auctions work. The agents give a guide price but it can sell below or above that figure, sometimes substantially over the guide price so you need to have a set maximum figure you want to go to (minus any renovation costs).

I have watched quite a few episodes as I have recently had a few days off work ill and the one thing that the presenter (he does have property knowledge) keeps saying is that you must read the legal pack before the auction so there are no surprises if you buy the property.

Hope that helps a little :)

[Old_Geezer]

A friend of mine sold by auction once because he wanted a quick sale, no chains, in order to resort his life on retirement. He was lucky a purchaser who wanted it to live on rather than as a do-up-and-sale investment put in a reasonable bid.

But I expect reasons are many & varied. Check it out properly, know what you are potentially taking on.

[Old_Geezer]

But why did it fail to sell at auction ? If it needs a fair bit of repair then maybe the only bids were under the minimum acceptable since all were looking to do up and sale for profit, so was not interested in paying a reasonable price.

[kat-kin]

Shelleybobs, I've watched that programme a few times and I'll go back to watching it now. You never know,I might just learn something. Thanks.

[kat-kin]

Old-Geezer,That's exactly what Im thinking..what's wrong with the bungalow. It was for sale then went to auction and now back up for sale £1,000 cheaper! It says it need updating but, Im wondering if there's anything deeper than that. Cosmetic work is fine but as for "What lies beneath" no chance. My son in law is coming with me to view it so least we'll get a better idea. Thanks.

[Canary42]

"needs updating" can, and often does, cover appalling shortcomings - caveat emptor

[FredPuli43]

Don't worry if it didn't sell at auction. The vendor may have set a reserve (minimum price) which was unrealistic, so the auctioneer wasn't allowed to offer it at a market price or it simply may not have found anyone in the room or online or otherwise who happened to want it; a particular problem with small auctioneers who haven't advertised properly or who don't have online bidding. If the survey shows nothing and simple searches are positive (no motorway planned nearby, no adverse rights of way through it, not built on old mine shafts etc) then go for it.

In every auction, from antiques to property, a percentage won't sell. The one defect of auctions is always that it takes two eager bidders to make a price and sometimes they aren't there.

[bednobs]

£1000 cheaper really isn't very much cheaper in the grand scheme of houses

[geno500]

That is the main reason it needs a lot of up doing up,you find this a lot with bungalows because people who buy them do not want to do much work as they are getting older,go and have a look at it,take somebody who knows something about building they may spot a big problem,if I was looking at it I would check the roof just look at it front and back before you even go in,beware of trees near it,new electrics,central heating,double glazing ,kitchen and bathroom,factor in £15,000 and do not forget to get a lump of the asking price.

[kat-kin]

Im sorry I have'nt replied to you all sooner about the bungalow I was after. It turned out to be subsidance!. No wonder nobody is interested. Im still looking out for another small place to come along. Boxtops, I made a mistake,it was actually £1,000 more! Im watching Homes Under The Hammer and learning..I hope. Thanks again.