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  1. #1
    @hibs.net private member bingo70's Avatar
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    Buying a Property at Auction

    Has anyone done this before?

    Would anyone have concerns about buying this way if they found a house they loved?

    Now before you answer that, in the interests of transparency, I want to admit that Iíve got a professional interest in your answer.

    Iíve recently started up an online property auction company, Iím not going to give the name of it as I donít want to use this thread as an advert. I am however curious to hear peopleís thoughts and perceptions of the industry.

    Theres one thing in particular Iím thinking of changing that would set me apart from the other companies, Iím curious however to see if the thing Iím thinking about changing comes up in peopleís thoughts at all without me mentioning what it is.

    Admins, I hope this is ok however if not then just do what you need to do.

    Thanks.


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  3. #2
    @hibs.net private member Jack's Avatar
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    I've thought about this in the past but considered it too risky.

    Do you get a home report on properties these days?

  4. #3
    @hibs.net private member Alfiembra's Avatar
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    I think programs like ďHomes under the HammerĒ have glamourised buying a property at auction somewhat.
    I donít recall seeing any that have thrown up really big issues like subsidence, rising damp, wood rot etc. Also most are bought by developers or people with previous experience of doing up properties often for rental income.
    So to answer your question I think everyone hopes to get a bargain but the risks of buying at auction would be too high for me.

  5. #4
    @hibs.net private member bingo70's Avatar
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    Quote Originally Posted by Jack View Post
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    I've thought about this in the past but considered it too risky.

    Do you get a home report on properties these days?
    Thanks Jack, great answer 😃

    Iíll try to answer this without it becoming a sales pitch.

    Yes, you should still get Home Reports. Something to be careful of is the date of it though. Nature of the beast with auction sales it may have been on the market a long time so the home report may not be worth the paper itís written on. Thatís not always the case though, just something to be mindful of.

  6. #5
    @hibs.net private member bingo70's Avatar
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    Quote Originally Posted by Alfiembra View Post
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    I think programs like ďHomes under the HammerĒ have glamourised buying a property at auction somewhat.
    I donít recall seeing any that have thrown up really big issues like subsidence, rising damp, wood rot etc. Also most are bought by developers or people with previous experience of doing up properties often for rental income.
    So to answer your question I think everyone hopes to get a bargain but the risks of buying at auction would be too high for me.
    Thanks for the response.

    If you donít mind me asking, what element of risk worries you more, ending up with a dud property or is it the auction process where by you pay a deposit and are bound by it at the point of bidding?

    If itís the dud property that worries you would that not be the same whether you bought it at auction or the open market?

  7. #6
    @hibs.net private member Jack's Avatar
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    Quote Originally Posted by bingo70 View Post
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    Thanks Jack, great answer 😃

    Iíll try to answer this without it becoming a sales pitch.

    Yes, you should still get Home Reports. Something to be careful of is the date of it though. Nature of the beast with auction sales it may have been on the market a long time so the home report may not be worth the paper itís written on. Thatís not always the case though, just something to be mindful of.
    I'm actually looking for a house just now.

    Our wishes/desires/needs are quite specific mainly because we love the house we're in but we're thinking of the not too distant future, getting in to our final home while we can still be bothered with the upheaval.

    If an auction property came up that fitted our our spec we would consider it.

  8. #7
    @hibs.net private member Alfiembra's Avatar
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    Quote Originally Posted by bingo70 View Post
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    Thanks for the response.

    If you donít mind me asking, what element of risk worries you more, ending up with a dud property or is it the auction process where by you pay a deposit and are bound by it at the point of bidding?

    If itís the dud property that worries you would that not be the same whether you bought it at auction or the open market?
    Yeah itís the risk of not knowing if itís a dud or not. When you are buying on the open market itís up to you to find out as much as you can by means of surveys and viewings, or land registry issues which your solicitor would check. Even when you have bought you have a few days grace if things like the central heating is faulty that the seller has to make good

  9. #8
    @hibs.net private member Moulin Yarns's Avatar
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    Quote Originally Posted by Jack View Post
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    I'm actually looking for a house just now.

    Our wishes/desires/needs are quite specific mainly because we love the house we're in but we're thinking of the not too distant future, getting in to our final home while we can still be bothered with the upheaval.

    If an auction property came up that fitted our our spec we would consider it.
    Is there nothing you can do to the existing house to make it closer to your ideal? Extend, and put in a helipad 😉
    WASH YOUR HANDS, WEAR A MASK, KEEP 2M APART AND GET THE VACCINE

  10. #9
    Coaching Staff Smartie's Avatar
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    I know nothing about it but I'm curious.

    As a student in Dundee I actually bought 2 joined up properties, rented rooms out to mates, did them up and sold them on at a very decent profit and set myself up in a decent position very early on in life. It was the sort of thing you could do in the late 90s and all I had to do was to get my Dad to be a guarantor. I've since lived in a new build flat for the past 16 years and not had any reason to move.

    Having a wee girl and hoping to add to the family over the next few years I accept that I'll need to move on fairly soon so I'll be getting back into that market again.

    And not being the greatest businessman in my line of work, I'm not in as rosy a financial position as some of this might suggest I should be in (I've spent the past decade seeing all my money go to pay off a big debt taken on to buy my business - then see that debt rise back up again over the past year due to covid.)

    So my next step will be an important one and I'm not against a gamble of sorts if the circumstances permit.

    Where would I go to find out more about it? It's "not knowing about it" that would be my biggest put off rather than anything else, although after knowing more it may still be something I would decide against.

  11. #10
    @hibs.net private member Speedy's Avatar
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    Quote Originally Posted by bingo70 View Post
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    Has anyone done this before?

    Would anyone have concerns about buying this way if they found a house they loved?

    Now before you answer that, in the interests of transparency, I want to admit that Iíve got a professional interest in your answer.

    Iíve recently started up an online property auction company, Iím not going to give the name of it as I donít want to use this thread as an advert. I am however curious to hear peopleís thoughts and perceptions of the industry.

    Theres one thing in particular Iím thinking of changing that would set me apart from the other companies, Iím curious however to see if the thing Iím thinking about changing comes up in peopleís thoughts at all without me mentioning what it is.

    Admins, I hope this is ok however if not then just do what you need to do.

    Thanks.
    I'd definitely consider it. As long as the home report and potential for viewing prior to completion exists then I'm not sure what the additional risk is.

    Feel free to PM me your site. The biggest barrier to buying by auction at the moment is I wouldn't know where to start.

  12. #11
    @hibs.net private member lord bunberry's Avatar
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    Quote Originally Posted by Alfiembra View Post
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    Yeah itís the risk of not knowing if itís a dud or not. When you are buying on the open market itís up to you to find out as much as you can by means of surveys and viewings, or land registry issues which your solicitor would check. Even when you have bought you have a few days grace if things like the central heating is faulty that the seller has to make good
    Surely you can do that before the auction? The house is still available to view and you can still do your research on it.

    United we stand here....

  13. #12
    @hibs.net private member bingo70's Avatar
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    Quote Originally Posted by lord bunberry View Post
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    Surely you can do that before the auction? The house is still available to view and you can still do your research on it.
    Yes, thatís right.

    Iím pleased you replied as I genuinely donít want to turn this into a sales pitch for what I do, I know thatís not what this place is for so I didnít want to start trying to overcoming objections. 😊

    The poster was right about not getting guarantees etc so there is an element of risk on that front, I suppose itís just a case of leaving yourself a bit budget just in case something unexpected comes up.

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