Buying at auction

katiek102010

Seen a property at auction I'm interested in.

This will be first time possibly bidding and I have a few questions

AMV is approx 30k more than what similar properties in the estate are selling for and what ppi reflects.

Is it possible to place bids below AMV?

Is Vat payable as its a 2nd hand property?

It is a repossession. Is there anything I should look out for?

Thanks

bobbyy gee

Usualy there's problems with property
Like flooding.pryite.fire damage tentants you can't remove
Title problems most need 100k in work
Some one bought one that was owned by a drug gang a few months a go it was burnt down after auction one place a few years ago had 3 fires

bobbyy gee

bobbyy gee wrote: »

Usualy there's problems with property
Like flooding.pryite.fire damage tentants you can't remove
Title problems most need 100k in work
Some one bought one that was owned by a drug gang a few months a go it was burnt down after auction one place a few years ago had 3 fires

A bit of a scaremonger post, in fairness.


I've been around property auctions for a few years, mostly paying attention the last 5 years, and I've not heard of any of those things happening (with the exception of difficult tenants, although they generally get the boot sooner or later and accept their fate).


That said, OP, do your homework. If it's a repossessed property, then that is likely why it's at auction, more-so than anything else. Banks want rid of them. Doesn't mean there aren't other potential issues.

You wouldn't buy a car without looking under the bonnet - get a solicitor to read the legal documents.

In relation to VAT, as far as I'm aware you only pay it if the house is "new", and you'd be the first owner (houses that weren't finished in the boom, etc).

katiek102010

bobbyy gee wrote: »

Usualy there's problems with property
Like flooding.pryite.fire damage tentants you can't remove
Title problems most need 100k in work
Some one bought one that was owned by a drug gang a few months a go it was burnt down after auction one place a few years ago had 3 fires

I k ow the house that was burned. Travellers wanted it, got outbid and the house got burned the night the auction closed

katiek102010

Deleted User wrote: »

A bit of a scaremonger post, in fairness.


I've been around property auctions for a few years, mostly paying attention the last 5 years, and I've not heard of any of those things happening (with the exception of difficult tenants, although they generally get the boot sooner or later and accept their fate).


That said, OP, do your homework. If it's a repossessed property, then that is likely why it's at auction, more-so than anything else. Banks want rid of them. Doesn't mean there aren't other potential issues.

You wouldn't buy a car without looking under the bonnet - get a solicitor to read the legal documents.

In relation to VAT, as far as I'm aware you only pay it if the house is "new", and you'd be the first owner (houses that weren't finished in the boom, etc).

This one was bought as an investment property in the boom. Its vacant, was being sold last year but sale fell through due to tenants. They are now removed and its now been handed to auction.

It is a repo on a buy to let. Seemingly tenants in it for a number of years, defaulted on rent and property repossession as a result tenants were moved out in 2019 and is vacant since.

bobbyy gee

bobbyy gee wrote: »

Usualy there's problems with property
Like flooding.pryite.fire damage tentants you can't remove
Title problems most need 100k in work
Some one bought one that was owned by a drug gang a few months a go it was burnt down after auction one place a few years ago had 3 fires

Not true, Recievers often put perfectly good properties up for auction.

Op, the most important consideration when bidding at auction is, know the process of bidding at an auction and understand how it differs from a standard property sale.

You can contact the auction house and place a bid below AMV before the auction date, but usually bids below advertised AMV will not be considered as this is the minimum value the seller will accept for the property.

katiek102010

Dav010 wrote: »

Not true, Recievers often put perfectly good properties up for auction.

Op, the most important consideration when bidding at auction is, know the process of bidding at an auction and understand how it differs from a standard property sale.

You can contact the auction house and place a bid below AMV before the auction date, but usually bids below advertised AMV will not be considered as this is the minimum value the seller will accept for the property.

Thank you, the AMV is at leak 30k over what the highest sale achieved over the last 2 years

katiek102010

katiek102010 wrote: »

Thank you, the AMV is at leak 30k over what the highest sale achieved over the last 2 years

Unfortunately the AMV is what the seller is willing to accept today. If it does not sell at auction, you may be in a good position to make a lower offer afterwards, but if it does sell at auction, the AMV was bang on.

Graham

AMV and reserve are not necessarily the same.

I'd suggest it would be unusual for them to be the same.

katiek102010

Graham wrote: »

AMV and reserve are not necessarily the same.

I'd suggest it would be unusual for them to be the same.

They have confirmed today the AMV and reserve are the same

Graham

Unusual that they tell you what the reserve is.

That would suggest they don't realistically expect the property to sell for anything close to the AMV.

ELM327

AMV is just that, anticipated market value.
Reserve will be much less. If they told you it's the same, they are lying.

ELM327

ELM327 wrote: »

AMV is just that, anticipated market value.
Reserve will be much less. If they told you it's the same, they are lying.

For auction, AMV can signify “Advised Minimum Value” at which the vendor will sell rather than a market value. In the op’s case, it appears that is the sellers/auctioneers position.