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Mayalabeille

Listing Before Auction

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My partner and I are currently looking at properties aiming at buying in the next few months. We have decided a maximum price we are ready to pay every month on a mortgage and so a maximum budget for a property (less than 2.5 times are combined salaries).

Started to visit properties a few weeks ago and have a couple planned for the weekend.

A bit earlier this week received a call from an agent saying that he has a brand new listing that is not currently advertised. Cottagy property in needs of refurbishment, asking price £129500. We like the location so we said ok for a viewing.

Doing some research I discovered than the property was bought in 2008 by a housing company for over £200000. Seemed weird to me so I researched a little bit more and discovered than the price they paid was actually for that property + a large garden plot than was behing on which they built 2 houses since then. So suddently I thought: Well you have cut the garden to almost nothing, built 2 properties and you are aiming at getting almost 2/3rd of the money you bought it for in 2008!!! You are dreaming.

Anyway further researches revealed that this same property is actually going for auction guide price £85000 in a month! What is the agent thinking? Offering it to us as a great deal for £129500?

I am still up for the viewing and if interested I will disclose my cards then, explaining that I know that it is up for auction in a month and that if I was going to make an offer it would be closer to the guide price rather than their stupid £129500 asking price.

What do you think?

Thanks

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My partner and I are currently looking at properties aiming at buying in the next few months. We have decided a maximum price we are ready to pay every month on a mortgage and so a maximum budget for a property (less than 2.5 times are combined salaries).

Started to visit properties a few weeks ago and have a couple planned for the weekend.

A bit earlier this week received a call from an agent saying that he has a brand new listing that is not currently advertised. Cottagy property in needs of refurbishment, asking price £129500. We like the location so we said ok for a viewing.

Doing some research I discovered than the property was bought in 2008 by a housing company for over £200000. Seemed weird to me so I researched a little bit more and discovered than the price they paid was actually for that property + a large garden plot than was behing on which they built 2 houses since then. So suddently I thought: Well you have cut the garden to almost nothing, built 2 properties and you are aiming at getting almost 2/3rd of the money you bought it for in 2008!!! You are dreaming.

Anyway further researches revealed that this same property is actually going for auction guide price £85000 in a month! What is the agent thinking? Offering it to us as a great deal for £129500?

I am still up for the viewing and if interested I will disclose my cards then, explaining that I know that it is up for auction in a month and that if I was going to make an offer it would be closer to the guide price rather than their stupid £129500 asking price.

What do you think?

Thanks

Do bear in mind that £85K is very likely a 'teaser' price to attract interest - when they look cheap they do often go for significantly more. Unless it's got some very obvious drawback - pub next door, cracks in the walls, rubbish dumped nearby etc. it's likely that other people will also be after a bargain. But you could be lucky, always worth a try.

I wouldn't disclose what you know to the EA for a while. Go to the viewing, make a list beforehand of absolutely everything you need to check/ask - so easy to forget things when an EA is trying to rush you around in 10 minutes. e.g. council tax band, storage space (any?), window frames, state of, which way does the garden face? - not a bad idea to take a little compass in case it's cloudy - the EAs hardly ever know. Any musty/damp smell? etc. Open all cupboards to see size of storage - can be deceptive.

Take pictures from every aspect of each room to refer to afterwards.

That way you're armed with as much info as possible before you make any decisions.

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Find out when the viewing day is for the auction and view then ,you can the make a offer through them ,I would think the vendor would prefer to sell pre auction via the auction house as the fee will be less than the EA

The 85k is a teaser and the129k is probably some where near the reserve

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My partner and I are currently looking at properties aiming at buying in the next few months. We have decided a maximum price we are ready to pay every month on a mortgage and so a maximum budget for a property (less than 2.5 times are combined salaries).

Started to visit properties a few weeks ago and have a couple planned for the weekend.

A bit earlier this week received a call from an agent saying that he has a brand new listing that is not currently advertised. Cottagy property in needs of refurbishment, asking price £129500. We like the location so we said ok for a viewing.

Doing some research I discovered than the property was bought in 2008 by a housing company for over £200000. Seemed weird to me so I researched a little bit more and discovered than the price they paid was actually for that property + a large garden plot than was behing on which they built 2 houses since then. So suddently I thought: Well you have cut the garden to almost nothing, built 2 properties and you are aiming at getting almost 2/3rd of the money you bought it for in 2008!!! You are dreaming.

Not really. If the two adjacent properties also sold for about 120K then the value of the garden that they grabbed was about 60-70K.

tim

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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