Auction prices - how accurate are they?

[hummusavocado]

Complete newbie to property. The only way I can think of owning is to buy a do-er upper.

Looking at auction properties, there's one that has a "price" of 120k. Would this be the starting price? Do they go hugely over this starting price usually (I know it depends... but any info would be great)?

I've no idea how it works!!

That's a guide price which is not necessarily equal to a market valuation.

If there is a reserve on the property, it is likely to be within 10% of this.

If you are buying in a popular area and the property is not riddled with problems, I wouldn't bet on getting a bargain.

You are also at a disadvantage that as soon as the hammer goes down, you exchange. So you will lose any cash deposit you put down if you don't complete within a set (short) timeframe. So if you need a mortgage, I seriously wouldn't bother.

As the pp said... really only for cash buyers. If the done up property in your 120k guide example would be worth 250k then it will probably go for over 200k.
You dont get many bargains at auction anymore, and is virtually impossible to buy with a mortgage unless you use an expensive bridging loan