Amazing bargain house?

[ChocolateHelps]

AIBU to think that this is an absolute bargain? Or is it likely to sell for loads more than that at auction?

I have been feeling pretty dispairing of my DC's ever being able to afford a normal family house but having a play on Rightmove (when I should be making dinner) and there are some (not many) houses up for auction starting around £50k

www.rightmove.co.uk/properties/111839456

It's Bilston, which is not a particularly great area and you're right, the guide price is no indication of where the bidding will actually finish.

The fact they start on 50 absolutely doesn't mean they end up anywhere near. I had my eye on few around mine. Start 30k, sold 80k

I don’t know the area but guide prices are intended to draw people in. It will go for a lot more normally

Loads of vacant properties round there being auctioned. Sale prices would indicate they will go for 150k plus.

www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=POSTCODE%5E963522&minBedrooms=3&maxPrice=60000&minPrice=50000&radius=3.0&propertyTypes=&mustHave=&dontShow=&furnishTypes=&keywords=

50K is only the starting price not a fixed price.

We had a look at investing in this -> www.sdlauctions.co.uk/property/24016/bungalow-for-auction-nottingham/

It'd been used as a cannibis grow house and needed literally everything doing (and then some!). Guide price £45k, sold price £123k.

In 2013 we bough an ex repo do-er upper for £50k. It was a 2 bed mid terraced in a not so nice area, but we gutted it, did it up and sold it almost 5 years later for £90k which was awesome and went a long way towards putting a deposit down on our next house. As it happens our next house was also a do-er upper and we've just had it revalued. They reckon it's gone up 40% which we're very happy with. 25% would've covered rennovation costs and we've only had it 4 years with no plans to move.

It definitely can be done, just got to have the right expectations and be willing to hop up the ladder.

Auction means sold as seen. You don't get to have a look around or negotiate or survey it or check the legal problems. It's yours when the hammer falls. They're usually pretty crap homes with tons of repairs needed, which is why it wasn't worth selling the traditional way.

Buying a house at auction isn’t the best idea for first time buyers. As PP said, it’s sort of a sold as seen deal. Also, you can’t get a mortgage, so they’d have to be able to raise the 50k another way.

It doesn't seem to be in too terrible condition, most of it is liveable while it's decorated room by room, so will probably go for considerably more than that, maybe around 80% or so of a more neutrally decorated 'done' one in the same area.

Now if you want a real project that probably won't go for a massive amount above guide price, I give you this.

I’d imagine it will sell for around £100k. That seems pretty average for Bilston

@BarbaraofSeville

It doesn't seem to be in too terrible condition, most of it is liveable while it's decorated room by room, so will probably go for considerably more than that, maybe around 80% or so of a more neutrally decorated 'done' one in the same area.

Now if you want a real project that probably won't go for a massive amount above guide price, I give you this.

OMG! The bath 🤮

Have you never seen Homes Under the Hammer?

Guide price is often half of what a house sells for. There are also very specific auction rules about paying a large downpayment on the day, and then you have a set amount of time (pretty short) to pay the rest. If the property is being sold by the local Council, you pay their full legal costs too.

It will sell for way more than that.

When I last went to Bilston, they were trying to rebrand it as an ‘urban village’. I think that’s ambitious - but it did have an amazing chippy.

@WomanStanleyWoman

Majors , the best chip shop in the world

I'm from not too far from there and whilst is not the best area there are absolutely worse places to live although I think calling it a village of any kind is pushing it a bit

I'd guess it will go for around £85/90k , lots of non traditional builds in that area so you do see a lot of them up for auction . That might not be the case with that house though .

I'd live in it for the right price , seems like a bargain until you find the Japanese knot weed

Previous sold prices on that street indicate it's worth about £130k+. It'll go for nearer that, I presume. It looks in alright condition. Low guide prices encourage more bidders.

@kwiksavenofrillsusername

Buying a house at auction isn’t the best idea for first time buyers. As PP said, it’s sort of a sold as seen deal. Also, you can’t get a mortgage, so they’d have to be able to raise the 50k another way.

You can get mortagge on property in auction

If it's going to be sold at auction it's going to pretty much go for what it's worth.

There will be some clued up people there. Eg if it went for £50k and similar houses in that area normally go for £100k that might be because it's built on a nuclear-waste dump, or it has no foundations or its actually leasehold with six years left to run. There would be a reason why other people would be sitting on their hands and letting it go "cheap".

Cheap…

www.auctionhousecumbria.co.uk/property_type/beach-cottage-the-hill-allonby-cumbria-ca15-6pt/?fbclid=IwAR2kdgN7ViVwSaCTifJxjwK3eJ5B2VE48pIWf5LMUhwWs3jTG5EMTYMkbvY

@ChocolateHelps

Nearly as bad as one lived in by a person I used to visit as an older persons social worker. And no, we couldn't legally get the occupant to leave. Multiple deep cleans, environmental health interventions, etc etc and it always returned to status quo ante. Eventually it was sold and gutted.
Self neglect and hoarding is a terribly hard cycle to break.

@Cirin

Auction means sold as seen. You don't get to have a look around or negotiate or survey it or check the legal problems. It's yours when the hammer falls. They're usually pretty crap homes with tons of repairs needed, which is why it wasn't worth selling the traditional way.

This isn't true, you just have to do it before the auction if you want to do it at all.

We've bought at auction, surveyed 1 and not the other for various reasons. 1 we bought before the survey by offering what we thought it'd go for plus a little.

Each time the legal pack has been thoroughly checked by our conveyancer so no surprises post auction.