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frenchy

Buying At Auction

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Hi guys,

I am considering buying a house at auction in 2 weeks. I have viewed the house and made an offer to the auctioneer (offering the guide price) verbally (as opposed to in writing) but the offer has allegedly been rejected. Is the auctioneer obliged by law to pass offers (like an EA would be)? Or is he BS-ing me?

PS: the reason for offering prior to auction is to give me a better change to get funds on time. Lender is quoting 5 weeks without guarantee and I only have 4 weeks to pay the 90% balance.

Any advice would be much appreciated.

Thanks.

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Was it close to the estimated price?

I'd go to the auction - but it's risky if you end up not being able to get the cash.

They might be desperate to sell - but see how it goes at auction. About 70% didn't sell at the last EM auction

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Given the guide price is usually 15%-30% below what they expect it to sell for it's little wonder they rejected the offer.. since if you're interested you'll be at the auction and will be competing with others interested.

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Was it close to the estimated price?

I'd go to the auction - but it's risky if you end up not being able to get the cash.

They might be desperate to sell - but see how it goes at auction. About 70% didn't sell at the last EM auction

I offered the guide price quoted on the auctioneer website. I don't know the estimated price, I am instructing a survey anyway (at risk obviously) to see how much the bank would lend but don't know if this will be done on time for auction. I am wondering whether I ought to call the solicitor representing the seller to ask if he knows an offer was passed. Also while you are there, do you know what tend to happen when prices hover around a stamp duty threshold? The guide price for this house (and my initial offer) is 235k, I would not consider offering more than 250k but I imagine is someone jumps to 250k then I am ****ed!

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Given the guide price is usually 15%-30% below what they expect it to sell for it's little wonder they rejected the offer.. since if you're interested you'll be at the auction and will be competing with others interested.

Depends on the auction, here in Birmingham the guide is normally the reserve. Here is a statement taken from Cottons last viewing schedule.

The Guide Price Schedule is intended to be a guide price (usually expressed as a range) indicating the price region expected and may be subject to change at any time. The Reserve Price which is agreed with the Vendor prior to the auction sale, will NOT exceed the

highest quoted Guide Price. The viewing schedule is correct at the time of going to press and we cannot be held accountable for any changes which occur due to a property being withdrawn/sold prior or cancelled for any other reason. All interested parties are advised to

make regular checks for any variations of guide price or viewing times. Please turn over for Guide Prices

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I offered the guide price quoted on the auctioneer website. I don't know the estimated price, I am instructing a survey anyway (at risk obviously) to see how much the bank would lend but don't know if this will be done on time for auction.

Get a solicitor to look at the legal pack now too.

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Thanks SarahBell, I will indeed but the legal pack has not been release yet...

And when is the auction?

My best advice is to get a solicitor who deals in auctions all the time and speak to them. They will be ones who are capable of doing things quickly and will perhaps have some advice for you at this stage.

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Just a warning, if you do go along to the auction, and they clearly see you there, be very wary of any bids on the property you are interested in being "off the wall".

In other words, the possibility of a stoodge in the audience bidding against you and bidding up the price because they know you want the house - or even the auctioneer taking bids against your own out of thin air.

Always stand at the back of the auction where you have clear line of sight of the auctioneer and also every one else in the room - i.e. so that you can see who else is bidding or whether anyone else is bidding.

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Always stand at the back of the auction where you have clear line of sight of the auctioneer and also every one else in the room - i.e. so that you can see who else is bidding or whether anyone else is bidding.

Or get someone to stand at the front side looking back and give you the nod if no one else is bidding.

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Or get someone to stand at the front side looking back and give you the nod if no one else is bidding.

And then your mate doing the nodding ends up buying every property! :lol:

I have posted the story before on here of attending an auction in Swansesa about 2 years ago. Of about 20 - 25 properties not one got a single bid.

Then a workshop came up and 2 guys began bidding against it. Eventually one twigged that he was being bid up, got a tad angry and vocalised his view that something dodgy was going on and he was withdrawing. The auctioneer asking the other guy if he wanted to bid further - he was the only one left in - and the guy stood up and ran - yes, ran - out of the room.

Ten minutes later he sheepishly returned, picked his car keys up from the seat next to where he had been sitting and ran out again.

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TMT, Sarah, thanks for the advise. Having expressed a strong interest I am weary of being played. I was intending to sit at the back anyway to see indeed who is bidding against be but I wasn't thinking about the crooked behavior of auctioneers... I am new to this hence why I am trying to avoid going to the auction. The auction is on 28th June and I understand the legal pack is due to be released 7 days prior.

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And then your mate doing the nodding ends up buying every property! :lol:

Ok ok some mutually agreed signal like taking his glasses off.

They are normally quite careful to not sell to someone sneezing though.

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TMT, Sarah, thanks for the advise. Having expressed a strong interest I am weary of being played. I was intending to sit at the back anyway to see indeed who is bidding against be but I wasn't thinking about the crooked behavior of auctioneers... I am new to this hence why I am trying to avoid going to the auction. The auction is on 28th June and I understand the legal pack is due to be released 7 days prior.

Make sure you read the Legal Pack before you decide to do anything. If you are serious, maybe worth getting a solicitor to go through the pack. I did. It was worth the £60 I paid. The solicitor actually found out that the properties were involved in a mass mortgage fraud which was going through litigation. The petrol money I saved alone was worth it. You can also save the fee by asking the solicitor to go through the pack without producing a written report. You can just see them and talk.

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  • 312 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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