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Auction Advice

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Hi Everyone. I would like to ask some advice.

In a previous thread i mentioned i viewed a house recently which i liked. To summarise the house had an asking price of over £165,000. However, it seems over priced. The same estate agent who is dealing with the sale told me his independent valuation for mortgage valuations would be in the £125,000 range. On viewing the house however, the estate agent told me i would have to ante up with the full asking price of £165,000 if i wanted the house. While not saying so directly the estate agent made it clear that any offers under £165,000 would not be considered.

The house has been on the market one month and is an estate sale. I have been told there were 9 viewings in the first two weeks it was listed for sale. I was also told the seller is in no hurry to sell. I am informed he turned down an offer of £200,000 exactly a year ago.

Yesterday, i passed the house and as well as the estate agents sign there was a new sign giving details of the house coming up for auction. Its going to be auctioned by Wilsons in a months time. I phoned today and asked what was the guide price. I was told it was £120,000.

My questions... Does it not seem strange that this house would be up for auction so soon after it come onto the market through an estate agent. It just does not add up to what i was told by the estate agent. In other words the seller being in no rush to sell and wanting the full asking price. An asking price backed up by the estate agent who told me it was value for money at the price.

I would appreciate any thoughts. I have never been to an auction and would like to know how accurate are guide prices at the moment.

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Wilsons do repos. The estate agent was attempting to wipe your eye in the crudest way possible.

There is also an issue which imo is going to be a big driver in the market, that is the banks attitude to negative equity.

If the vendor in the case quoted needed an fixed amount to clear the mortgage this would have been their minimum sell price if the bank refused to allow them to sell in negative equity. In that case the vendors only option is to do a voluntary possession or stop paying the mortgage and force the bank to possess.

These options are coming to the fore as a lot of people who lost their jobs in the original crash are now coming to the end of their two year mortgage support from the benefits system

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Thanks for the replies. Do Wilsons ONLY auction repo properties. I would be very surprised if this was a repossessed property. Not just because the estate agent clearly told me it was being sold by a family following a death. But i would have thought to be a repo property it would need to be sold at close to peak prices. I would be very surprised if this house was sold during the boom. I was told this house belonged to one family and has never changed hands.

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Hi Everyone. I would like to ask some advice.

In a previous thread i mentioned i viewed a house recently which i liked. To summarise the house had an asking price of over £165,000. However, it seems over priced. The same estate agent who is dealing with the sale told me his independent valuation for mortgage valuations would be in the £125,000 range. On viewing the house however, the estate agent told me i would have to ante up with the full asking price of £165,000 if i wanted the house. While not saying so directly the estate agent made it clear that any offers under £165,000 would not be considered.

The house has been on the market one month and is an estate sale. I have been told there were 9 viewings in the first two weeks it was listed for sale. I was also told the seller is in no hurry to sell. I am informed he turned down an offer of £200,000 exactly a year ago.

Yesterday, i passed the house and as well as the estate agents sign there was a new sign giving details of the house coming up for auction. Its going to be auctioned by Wilsons in a months time. I phoned today and asked what was the guide price. I was told it was £120,000.

My questions... Does it not seem strange that this house would be up for auction so soon after it come onto the market through an estate agent. It just does not add up to what i was told by the estate agent. In other words the seller being in no rush to sell and wanting the full asking price. An asking price backed up by the estate agent who told me it was value for money at the price.

I would appreciate any thoughts. I have never been to an auction and would like to know how accurate are guide prices at the moment.

Sometimes guide prices are put deliberately low to entice people to the auction.

I have personally seen a property guided at £300K go for well over £500K. Mind you it was a bit of a 'one-off' property and we did think the GP was deliberately low.

Thing is, if you like the house, other people will probably like it, too.

If properties do go very cheaply at auction, it's often because there are factors putting a lot of buyers off: not just a tatty state, but e.g. non-standard construction or something else that's not immediately obvious to a non-professional eye, or something in the legal pack.

OTOH there are plenty of cases of people who've had offers turned down, and who've subsequently gone to the auction and bought the property for quite a bit less than they'd offered before.

Edited by Mrs Bear

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I must say the strange way in which this house has been marketed does tally up to the replies about it being a repo. The actions of the seller whoever that may be only seems consistent with it being a repo.

However, when i enquired about the house one of the first questions i naturally asked was what is the position of the seller. If it does turn out to be a repo i was cleared and deliberately lied to.

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Hi Doccyboy. In answer to your question there were no signs whatsoever the house was a repo.

It just seems strange that a seller so uncompromising on an asking price when i viewed the house would go to auction just a few weeks after putting the property on the market. In normal ciccumstances you would think a person who sells at auction is a very motivated vendor who is happy to let the market decide the worth of something. Going to auction just a month after putting the house on the market seems a very quick acceptance that they could not find a seller at the asking price. But they would not even consider any bids from me just a week ago unless i was popping for the full asking.

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Would i be right in thinking that if a property has a guide price of £120,000 it will always have reserve price a certain % below this. Or is the reserve price sometimes above the guide price. If the gavel comes down above the reserve then any deal is binding?

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There's not really any method in setting the reserve in relation to the guide price,or vice versa. But if I was a seller,I wouldn't see much point in having it too much higher than the guide.

On a separate note,if the EA knows the vendor has put it into auction,he has no incentive at all to try and sell it before the auction. Generally the auctioneer will take over control of the marketing,and get the vendor to instruct the EA to remove the house from their books. Rem if te EA has a list of people willing to bid on it, once the auctioneer gets hold of it I can't see them forwardin the info to the auctioneer..he wont get a cut of the commission of the sale at auction.

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Hi Everyone. I would like to ask some advice.

In a previous thread i mentioned i viewed a house recently which i liked. To summarise the house had an asking price of over £165,000. However, it seems over priced. The same estate agent who is dealing with the sale told me his independent valuation for mortgage valuations would be in the £125,000 range. On viewing the house however, the estate agent told me i would have to ante up with the full asking price of £165,000 if i wanted the house. While not saying so directly the estate agent made it clear that any offers under £165,000 would not be considered.

The house has been on the market one month and is an estate sale. I have been told there were 9 viewings in the first two weeks it was listed for sale. I was also told the seller is in no hurry to sell. I am informed he turned down an offer of £200,000 exactly a year ago.

Yesterday, i passed the house and as well as the estate agents sign there was a new sign giving details of the house coming up for auction. Its going to be auctioned by Wilsons in a months time. I phoned today and asked what was the guide price. I was told it was £120,000.

My questions... Does it not seem strange that this house would be up for auction so soon after it come onto the market through an estate agent. It just does not add up to what i was told by the estate agent. In other words the seller being in no rush to sell and wanting the full asking price. An asking price backed up by the estate agent who told me it was value for money at the price.

I would appreciate any thoughts. I have never been to an auction and would like to know how accurate are guide prices at the moment.

Maybe you will start ignoring what EAs tell you and begin trusting your own judgement. Have you worked out yet what this house is worth to you? If you are really interested, make a formal offer. Give the EA something to work with, at the minute your just another tyre kicker to him and probably not being taken very seriously. Yes, you might get it cheaper at auction but you need to be honest with yourself and decide if you've really got the balls to buy at auction and whether you can tolerate and afford the risks associated with such purchases.

I think you are going to have to accept that buying a house is not an exact science, there's no right or wrong answers, some deals you do better on than others.

Time to put up or shut up Sundance - if it would be a good buy at £120,000 what have you got to lose in making a formal offer? The worst they can say is no. But if you never try, you never know and that's where I see your risk at the present because you keep trying to make rational sense of what EAs tell you rather than biting the bullet and let your money do the talking. But please, stop with the EA says stuff, it's all a pile of crap.

Apologises if this seems a bit direct but I honestly think you need to hear it.

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A couple of possibilities:

1) the old dear who owned it had a mortgage equity withdrawal , so even though in the family for years, still had a mortgage on it, to pay the care home etc.

2) there's something wrong with the house -eg subsidence, so vendor realised he cannot get original asking price, and does not want to sell in the usual way, because that might involve him lying. So would rather sell at auction, to some fool that has not had a survey done before the auction.

3) If you get a land registry title , it should tell you if the house has been re-possessed by the bank. (Land registry : 4 quid).

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It's been awhile since we've seen so many properties at an auction! A mixed bag here..

http://www.wilsonsauctions.com/property_details_mallusk_new.asp?id=747328 - £80k for a 2 bed semi out the road from Portadown looks expensive to me.

http://www.wilsonsauctions.com/property_details_mallusk_new.asp?id=757197 - £10k for this site seems quite reasonable to me, given the existing dwelling, planning permission shouldn't be a problem.

http://www.wilsonsauctions.com/property_details_mallusk_new.asp?id=762757 - £120k for a 3 bed detached in Donaghcloney - if you got it for £100k that would be a reasonable enough price.

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It's been awhile since we've seen so many properties at an auction! A mixed bag here..

http://www.wilsonsauctions.com/property_details_mallusk_new.asp?id=747328 - £80k for a 2 bed semi out the road from Portadown looks expensive to me.

http://www.wilsonsauctions.com/property_details_mallusk_new.asp?id=757197 - £10k for this site seems quite reasonable to me, given the existing dwelling, planning permission shouldn't be a problem.

http://www.wilsonsauctions.com/property_details_mallusk_new.asp?id=762757 - £120k for a 3 bed detached in Donaghcloney - if you got it for £100k that would be a reasonable enough price.

I agree with all you're saying. The only thing is the Cookstown one see to be out in the sticks.

Grand if you're from the region but I wouldn't move there.

The Donaghcloney one isn't bad for 100k but I bet the reserve is way about the 120k guide.

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Hi Everyone. I would like to ask some advice.

In a previous thread i mentioned i viewed a house recently which i liked. To summarise the house had an asking price of over £165,000. However, it seems over priced. The same estate agent who is dealing with the sale told me his independent valuation for mortgage valuations would be in the £125,000 range. On viewing the house however, the estate agent told me i would have to ante up with the full asking price of £165,000 if i wanted the house. While not saying so directly the estate agent made it clear that any offers under £165,000 would not be considered.

The house has been on the market one month and is an estate sale. I have been told there were 9 viewings in the first two weeks it was listed for sale. I was also told the seller is in no hurry to sell. I am informed he turned down an offer of £200,000 exactly a year ago.

Yesterday, i passed the house and as well as the estate agents sign there was a new sign giving details of the house coming up for auction. Its going to be auctioned by Wilsons in a months time. I phoned today and asked what was the guide price. I was told it was £120,000.

My questions... Does it not seem strange that this house would be up for auction so soon after it come onto the market through an estate agent. It just does not add up to what i was told by the estate agent. In other words the seller being in no rush to sell and wanting the full asking price. An asking price backed up by the estate agent who told me it was value for money at the price.

I would appreciate any thoughts. I have never been to an auction and would like to know how accurate are guide prices at the moment.

Yours for £116,000

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Without wishing to reveal too much i was at the auction last last and i did bid. Negotiations are still ongoing for the sale of the property. It did not sell at the auction for £116,000. That was just the highest bid. I dont wish to say any more than that at this time. It would probably have been best if i had not bid last night as with hindsight the property was not going to be sold unless the price realised was very high to please one of the sellers who seemed to have a veto.

I hope you will understand my reasons in not wishing to go into too many details. This has been a rather complicated sale for the sellers hence the seemingly strange decision that it went to auction.

More generally, it was the first property auction i had attended. Things can happen very quickly but i think it was a good experience.

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Without wishing to reveal too much i was at the auction last last and i did bid. Negotiations are still ongoing for the sale of the property. It did not sell at the auction for £116,000. That was just the highest bid. I dont wish to say any more than that at this time. It would probably have been best if i had not bid last night as with hindsight the property was not going to be sold unless the price realised was very high to please one of the sellers who seemed to have a veto.

I hope you will understand my reasons in not wishing to go into too many details. This has been a rather complicated sale for the sellers hence the seemingly strange decision that it went to auction.

More generally, it was the first property auction i had attended. Things can happen very quickly but i think it was a good experience.

Hey, way to go Sundance! Best of luck in securing a deal. Forget about pleasing one of the sellers, this is a BUYERS market. I'm impressed!!!!!!!!!!!!!!!!!!!!

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I had been under the impression that less than 20% of properties sold at a previous auction so i was very surprised to see so much bidding last night on every property. Although i have been told that many winning bids from last night may not have actually went through.

It seemed nearly all properties had a winning bid in the region on 5-20% below guide. The lot previous to the one i was interested in had a guide of 120 but sold for 98. As that was the same guide as the house i liked i had hoped that the lot i was interested would follow suit.

What did others think about the prices last night and also what are your thoughts at the minute regarding the wider economic world outlook. How would Greece or some other country going bust affect house prices here in the near to medium future.

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I had been under the impression that less than 20% of properties sold at a previous auction so i was very surprised to see so much bidding last night on every property. Although i have been told that many winning bids from last night may not have actually went through.

It seemed nearly all properties had a winning bid in the region on 5-20% below guide. The lot previous to the one i was interested in had a guide of 120 but sold for 98. As that was the same guide as the house i liked i had hoped that the lot i was interested would follow suit.

What did others think about the prices last night and also what are your thoughts at the minute regarding the wider economic world outlook. How would Greece or some other country going bust affect house prices here in the near to medium future.

It's a scary time OK just now, but remember the saying, fortune favors the brave!

Edited by lolacarrascal

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Uncertain how things will end up. Really need a few days to think clearly. The hope was that i may have been the only interested party at the auction for this property. But as always competition bids things up. In terms of price from hoping to have a very easy decision to make i now find myself with more of a dilema. The house requires a fair bit of work due to being old and there is a major sight line issue in terms of the drive way onto a main road. Both of those will cost money. We are expecting our first child in two weeks which is more of a priority.

In a perfect world the same house would come up for sale in six months or a years time. To be honest that would be preferable due to a lot of reasons.

Thanks everyone for your advice.

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Typical Wilsons BS.almost all houses sold on a provisional basis= get out of jail free card for auctioneer.if reserve for a house is £100k,auctioneer will bid it up to £99k himself without any possible downside. (bidding off the Walls). If no real person bids,it doesn't matter because it wasnt going to sell for less than £100k anyway.if auctioneer bids it up to 99k and a real life person bids,then auctioneer has sold the house and makes commission.easy money.

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  • 343 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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