Wez Posted December 6, 2004 Share Posted December 6, 2004 Hey All, Has anyone done this, did you save any money, do you know where I can get some info on it. The google searches bring up lots of sites that want you to subscribe for money to get info. Quote Link to comment Share on other sites More sharing options...
Supragal Posted December 6, 2004 Share Posted December 6, 2004 I'd love to know as well but it seems to be some big secret.. all the good ones seem to be snapped up by the agents before they hit the market. Quote Link to comment Share on other sites More sharing options...
Wez Posted December 6, 2004 Author Share Posted December 6, 2004 I am curious cause I saw two auctions which seemed silly cheap. One was for a 4 bed semi in my area with a starting bid of 165k, i would struggle to buy a 2 bed for that, the second was 3 acre of land with planning permission with a starting bid of 50k. Quote Link to comment Share on other sites More sharing options...
Christian Posted December 6, 2004 Share Posted December 6, 2004 I went to a property auction many years ago. Pay no attention to starting bids - it's all about where it ends up! Low starting bids attract more buyers who think they'll get a bargain. Quote Link to comment Share on other sites More sharing options...
Supragal Posted December 6, 2004 Share Posted December 6, 2004 Yeah, auctions are generally a little cheaper if you know what you're after but reposessed seem to be goodies... but I suppose unless the market drops or interest shoots up there won't be any as people are happily paying their mortgages... Quote Link to comment Share on other sites More sharing options...
toyotasuprauk Posted December 6, 2004 Share Posted December 6, 2004 I thought they weren't suitable for the majority of people as you have to have all the money available immediately. Any one know if thats true? Quote Link to comment Share on other sites More sharing options...
Christian Posted December 6, 2004 Share Posted December 6, 2004 As I said, it was years ago, but back then you were expected to complete within 30 days. I don't suppose it's changed now. I went out of interest, a place I wanted was up but we weren't in a position to buy, but I had to know what it went for. Quote Link to comment Share on other sites More sharing options...
Terminator Posted December 6, 2004 Share Posted December 6, 2004 Repo is the way to go, if you have the stomach for it. It is not always interest rates that cause repo’s family circumstances change and bang go the finances and there is no the way to go, but high interest rates often push people over the edge. The foreclosing lender is after a quick solution, the previous owner rarely wants to leave. You need to be very quick, know exactly what you are looking for and what is going cost to put right and be prepared for the unexpected. To stop re-entry, often all windows and doors may be damaged as the so called security firms just bung screws through the frames, so cracked D/G panels are common. Sometimes the previous owner tries to rip anything of value out of the place or just wreck it before the bailiffs turn up so it may not look pretty. Get the pluming electricity and gas checked out thoroughly just in case the owner has put holes in the pipes or screwed around with electrical connections. Believe me it does happen, this is someone pride and joy their last home we mare talking about for some they are at the end of their teather and there is no way they are leaving it spic and span for some bastard (you) to come along and pick up a bargin. It can be difficult to check the things you would normally check as the lender will have all the services cut off and the water systems drained down. There often is a huge amount of emotions tied up in the end of the eviction process. Be prepared for some flack from the previous owner too, and their friends and neighbours, if you plan to live there, as emotions run high and you will be seen as a vulture. It can take years for you to be accepted, so often best for investment purposes only. You need a cool head and keep your emotions out of it. Act fast too, as the good ones get snapped up but you need to know what you are doing. The last one I got a few years ago, was on the open market which is worse than auction, where at least you have time to visit properly once or twice and decide if you are going to bid a week or so later. On the open market you are buying from a huge organisation while will not be messed about and do not tolerate time wasters so you have to be in a position to complete fast and they may impose time limits or penalties sothey will sell to the first person who has the finances. We were at the head of nine other potential buyers within 15 minutes of the properties release. The agent had not even sent any details to the printers, they never did as I bought it with in 20 minutes of seeing it, because I knew the next potential buyer to be shown round was coming to view later the same morning and they would have bought it too. With the general market rising at 5% per year we hit 30% in the first and 40 in the second after a few mods and a revaluation. We heard that six of the nine kept track of our purchase ready to be the first to pounce in with an offer if we faltered. As for auctions yes you need the money or a very flexible laon, not difficult to get if you base it on your equity. You just drawdown on your equity when you need to so your are read to buy quickly. Guide prices as has been said do not mean much. They be set to draw extra potential buyers in. Beware as it is real money and not the monopoly stuff. It is really important to have a limit and stick to it. Do your research and get quotes so you know what you potential budget will be add at least 10% for contingency so you know you upper limit. Lots with little potential for planning permission are less likely to attract developers who are probably looking to clear the site and start again with more houses, so don’t want to cut their margins. You really must know your stuff, don’t let your heat rule your head as when the hammer falls when the auctioneer is looking at you it is your with not going back. There are many different types of property available at auction all auctioned for a variety of reasons. You can pick up a real bargin if you do your homework. It really depend who is bidding on the day it can be pot luck. There will be experienced developers there who know exactly what they want and first timers who many get carried away and bid above what the place would be worth on the open market. I have seen properties that were just about to going under the hammer sudden receive a flurry of bidding and jump 20% in a few bids. If you are considering this approach to buying. Go and look at a few places in the area you want to buy, but no intention of buying, go to the auction and see how it goes, set you own upper limit for the place and see if you would have won and get a feel for the auctioneer, it will be time well spent. All JMHO Quote Link to comment Share on other sites More sharing options...
Supragal Posted December 6, 2004 Share Posted December 6, 2004 Nice one Terminator! Just one thing... where do you find reposessed properties? Quote Link to comment Share on other sites More sharing options...
Terminator Posted December 6, 2004 Share Posted December 6, 2004 You can subscribe for a modest monthly fee, to agencies specialising in repo or you can let it be know among estate agents in the area you are interested in some of them may have contract with loan companies for disposal of repos AFAIK Quote Link to comment Share on other sites More sharing options...
Supragal Posted December 7, 2004 Share Posted December 7, 2004 Quote Link to comment Share on other sites More sharing options...
Wez Posted December 7, 2004 Author Share Posted December 7, 2004 Great info thanks. Quote Link to comment Share on other sites More sharing options...
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