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carmel20

Advice On What To Offer On Houses Which Didn't Sell At Auction

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Hi there,

I viewed 2 houses that were going up for auction, one with guide price at 90k+ and the other 115k+

I was interested in both of them but had other houses to view and so didn't attend the auction. I was a little gutted in the end as it turned out that they were the two houses I liked the best!! But today I checked and the houses did not sell.

I have phoned the agent to arrange a second viewing with the intention of making an offer, there is nothing wrong with either of the properties apart from they need a little refreshment etc

If I make an offer is it acceptable for me to offer the guide price? or should I go lower or slightly higher? The one at 90k is an absolute bargain, the one at 115k is a little nicer but I wouldn't say 25k nicer and that one is also a leasehold house which puts me off a little!!

Any advice for you experienced house buyers out there would be gratefully appreciated!!

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I believe the "guide price" is what the auctioneers or EAs decided to list it as, so I wouldn't base my offer on this.

Have a look at houseprices.co.uk for that postcode and see what the street values have been for the last 10 years or so - that will give you a flavour for how things have risen (and maybe fallen, if there are recent tranactions).

Use bing maps (maps.live.com) to view the aeroplane images of the street to see which properties most closely match the ones you're looking at - then reconcile this against houseprices.co.uk.

In general terms, I would offer low - very low. You're going to get talked up anyway, so start low; e.g. for the 115k one, suppose you decide that 107k is the max you would pay. Offer 94k - gets rejected - offer 98k - gets rejected - offer 103.5k ... and slowly get to your 107k target and you might get an acceptance of something lower.

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thanks for the reply!

So when I decide on the property I want do you think I should offer lower than the opening bid price?? In comparison to other houses in the area they are under priced but it is just that they need a bit of modernising and people in my area seem to be shying away from buying such properties at the moment.

I would be happy to pay 90k on the cheaper one, I would probably even go up to 95k, so do you think rather than just offering 90k straight up I should go lower??

With the 115k one there is currently a tenant in there, do you think this has any implications for me at all? I don't like the thought of giving notice to a tenant who might be quite happy there!!

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Were you aware of any bids on either at the auction? No point offering £100k if the bids got to £105k.

It's unusual for a guide price to be set below the reserve price as it reflects badly on the auctioneer - they would rather not put it in the auction. One exception is where the seller has asked for a lower guide to drum up interest in what they think will be a heavily bidded property. I've only seen that a couple of times and that's clearly not the case here.

Offer 90k on the cheaper one. It sounds like that's the one that you want. At 90k, you think it's a bargain. At 90k, you'll probably get the deal done. Can't guarantee below that and it sounds like you want it.

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Chicken has got a point here:-

...it sounds like you want it.

If you want it and are happy with the price then go and get it!

For me, I would disregard any previous offers/bids and just start low. This tactic, though, has the clear disadvantage that you might end up loosing the house. If this is an unacceptable outcome then you should offer as per Chicken's advice.

Regarding the one with the tennant ... any implications depends on what contract they have. I'm not familiar enough with this to know the "correct terms", but basically the tennant may have some sort of right to stay there beyond the sale of the house. This may be known as a "sitting tennant". First port of call is the EA, I guess, to see what they can tell you about the contract.

Don't worry about the giving notice bit ... you're going to get into a lot of debt when buying a house (i.e. the mortgage) so you must look after Number 1 at all times (that's you!). If it did come to giving notice, then actually I expect your conveyancing solicitor would issue some sort of "instruction" along the lines of "my client cannot exchange until the property is vacant" ... that is, it won't actually be you that gives notice.

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Hi there,

I viewed 2 houses that were going up for auction, one with guide price at 90k+ and the other 115k+

I was interested in both of them but had other houses to view and so didn't attend the auction. I was a little gutted in the end as it turned out that they were the two houses I liked the best!! But today I checked and the houses did not sell.

I have phoned the agent to arrange a second viewing with the intention of making an offer, there is nothing wrong with either of the properties apart from they need a little refreshment etc

If I make an offer is it acceptable for me to offer the guide price? or should I go lower or slightly higher? The one at 90k is an absolute bargain, the one at 115k is a little nicer but I wouldn't say 25k nicer and that one is also a leasehold house which puts me off a little!!

Any advice for you experienced house buyers out there would be gratefully appreciated!!

That'll be lots 34 and 70, right?

Try checking with the agents to start with. You might find there's more to it than meets the eye. I asked this afternoon after lot 61 (also marked still available), only to be fobbed off :(

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That'll be lots 34 and 70, right?

Try checking with the agents to start with. You might find there's more to it than meets the eye. I asked this afternoon after lot 61 (also marked still available), only to be fobbed off :(

I phoned the agent this morning and was advised that they are very much still available and were happy to arrange me viewings again. They even offered for me to see the mortgage adviser if I liked either of them. Those two are with millers countrywide and I note the property you are interested is with fulfords...did they not give you a reason for 'fobbing you off'?? seems very odd

I called after an auction property with fox and sons which didn't sell last week and they told me directly it had already sold post auction.

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sorry just saw the link to your own thread regarding that property. It is a shame they can't give you a proper answer, estate agents can be extemely irritating at times. The one I mentioned with fox and sons, well that was a cottage in polbathic. I called as it stated it was still available. They told me that it had not sold at auction but then straight afterwards 3 potential buyers came out of the woodwork and there was a bit of a bidding war between the three via the estate agents until it sold to the highest bidder.

Perhaps some people are put off from bidding at auction who are arranging mortgages and don't want to fork out on surveys prior to the auction and wait until after to make offers or people simply don't want to be in a contract and potentially get in a lot of trouble if they can't proceed with the sale. Just a thought...

As I didn't attend the auction I don't know if the lots I am interested in didn't sell due to no bids or whether there was a higher reserve price than the guide price which wasn't met. Guess I;ll find out next week! I'll let you know how I get on.

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