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Original poster

Auction - can this work? How?

420 replies

LoonyIdea · 03/07/2022 17:45

Here’s the bare bones:

I’ve seen a house I love, and it’s up for auction on July 21st with an auction house.

It’s a G2 listed house with some land.

It was previously on with A normal agent and an offer was accepted at £500k but it didn’t complete as the buyer’s solicitor wasn’t happy with a building certificate related to the underpinning. The old agent revealed that they believe the reserve to be £500k.

It is owned by MAG (Manchester Airport Group) who bought it as a compulsory purchase as a part of the A development, which never happened. They sold a lot of their portfolio but kept some with land, and this has been rented since.

My position:

I bought my husband out of my house as a part of our divorce and I now have a mortgage of £195k. My house is very saleable, on a popular estate and worth about £700 on a good day, £670 on a bad one. (Based on 3 local agents)

It was recently valued at £631 for the purposes of the remortgage as that was the figure I’d agreed with my husband some time ago.

I can put my hand on about £20k cash and everything else is in pension and in this house.

I earn £40k, PAYE.

And I really want to buy this house! How can I make it happen?

I had thought I might ask the seller to accept an offer prior to auction but if it’s ordinary auction terms then that doesn’t help me - I need more time, as it’s a cash flow issue.

I’m willing to pay a bit more for it and would go to £520 which I don’t think they’ll get at auction. The guide price is £475.

The house is uniquely unattractive to other buyers - it’s hard up against the motorway the plot is a Scheduled Ancient Monument, and the majority of the land at the back has no vehicular access at all. You can get a mower or a horse in and that’s it. And the house is a (properly underpinned) wreck. I however, love it and it would suit me perfectly.

im talking to some “we buy any house” sites and they’re talking about 75-90% of market value and could complete within a few weeks.

How should I proceed? Is this even possible?

OP posts:
Original poster
LoonyIdea · 03/07/2022 19:09

CheeryTulip · 03/07/2022 19:06

If I were as desperate as you, I'd move heaven & earth to quickly speak face-to-face with whoever has say over the house.

I’m going to. I’m going to kiss ass like it’s never been kissed. I’ve found the auctioneer. I know where he went on holiday and what cycling club he’s in. I’ve found all of the details of the vendor’s agent, and the main contractors who did the the underpinning and the sewage. I’ve got the archeological surveys, and the biodiversity report. But I haven’t got the finances teed up.

OP posts:
FAQs · 03/07/2022 19:13

You can ask offer a pre-auction price and ask what they are seeking to remove from auction. That might allow a traditional purchase, worth a shot if you love it. Sounds bonkers to me but sometimes the best decisions are.

InFiveMins · 03/07/2022 19:23

You aren't in a position to buy it right now.

It's going to auction so that someone with cash can complete within the timescale. You can't do that.

I don't mean to be unkind but just being realistic. The agent will want it to go to auction so it can sell quickly and they can get their commission quickly.

Original poster
LoonyIdea · 03/07/2022 19:24

FAQs · 03/07/2022 19:13

You can ask offer a pre-auction price and ask what they are seeking to remove from auction. That might allow a traditional purchase, worth a shot if you love it. Sounds bonkers to me but sometimes the best decisions are.

If they’d do that and wait a bit, I could pay them a bit more. Omg cross everything for me!

OP posts:
Original poster
LoonyIdea · 03/07/2022 19:25

InFiveMins · 03/07/2022 19:23

You aren't in a position to buy it right now.

It's going to auction so that someone with cash can complete within the timescale. You can't do that.

I don't mean to be unkind but just being realistic. The agent will want it to go to auction so it can sell quickly and they can get their commission quickly.

What can I do to persuade the agent to persuade the vendor to wait?

OP posts:
Alphabet1spaghetti2 · 03/07/2022 19:31

what can you do - offer money. That’s what they are after!
fingers and toes are crossed.

Minimalme · 03/07/2022 19:34

Apologies if my maths is wrong, but it looks like there would be no equity left from your sale to do it up?

If it is unmortgageable (and it may not be, ours nearly went to auction and has a mortgage) then would you be happy to live in a wreck?

Original poster
LoonyIdea · 03/07/2022 19:36

Minimalme · 03/07/2022 19:34

Apologies if my maths is wrong, but it looks like there would be no equity left from your sale to do it up?

If it is unmortgageable (and it may not be, ours nearly went to auction and has a mortgage) then would you be happy to live in a wreck?

Yes. And I’d have my income to do it up and no mortgage.

OP posts:
CheeryTulip · 03/07/2022 19:36

I don't suppose you'd post a pic OP.... I wanna see this lovely building..Smile

driedgrassinavase · 03/07/2022 20:01

I have got everything crossed for you OP

Original poster
LoonyIdea · 03/07/2022 20:12

Thankyou - I’d love to bore you all with it. It’s lovely if you like that sort of thing, a massive history nerd like me!

OP posts:
Itsbackagain · 03/07/2022 20:13

I think in Scotland you can only bid once you've provided proof you have the funds in hand.

HappyMediocreTime · 03/07/2022 20:14

If you can’t persuade them ahead of auction, hope that it doesn’t sell at auction (don’t buy it yourself then if you can’t make the terms) then try to convince them they are lucky to have you even wanting to buy it

Original poster
LoonyIdea · 03/07/2022 20:16

HappyMediocreTime · 03/07/2022 20:14

If you can’t persuade them ahead of auction, hope that it doesn’t sell at auction (don’t buy it yourself then if you can’t make the terms) then try to convince them they are lucky to have you even wanting to buy it

Gosh I so so so hope they let me buy it!

it’s a gorgeous evening here tonight and I thought I might go and have a little trespass again. It’s vacant and remote so no one would see me…

It has a dovecot and was mentioned in Domesday. That alone makes me breathless!

OP posts:
Original poster
LoonyIdea · 03/07/2022 20:17

Itsbackagain · 03/07/2022 20:13

I think in Scotland you can only bid once you've provided proof you have the funds in hand.

Sadly it’s very very not Scotland.

OP posts:
DameCelia · 03/07/2022 20:22

You can't buy it at auction, when the hammer falls you need to pay the deposit immediately and complete the purchase in (IIRC) 30 days, might be 21 or 28.
Your only hope is to persuade them to sell it to you now and withdraw it from the auction.
Or, if it fails to reach its reserve ask to buy it directly through the traditional route.

I once had a client turn up who had successfully bid on a house at auction, didn't have the cash to buy and needed a mortgage. He hadn't realised he'd have to pay a deposit or complete within the timescale. That was a slightly uncomfortable conversation!

CheeryTulip · 03/07/2022 20:30

LoonyIdea · 03/07/2022 20:12

Thankyou - I’d love to bore you all with it. It’s lovely if you like that sort of thing, a massive history nerd like me!

Another buff here, please do bore us...Grin

Original poster
LoonyIdea · 03/07/2022 20:30

DameCelia · 03/07/2022 20:22

You can't buy it at auction, when the hammer falls you need to pay the deposit immediately and complete the purchase in (IIRC) 30 days, might be 21 or 28.
Your only hope is to persuade them to sell it to you now and withdraw it from the auction.
Or, if it fails to reach its reserve ask to buy it directly through the traditional route.

I once had a client turn up who had successfully bid on a house at auction, didn't have the cash to buy and needed a mortgage. He hadn't realised he'd have to pay a deposit or complete within the timescale. That was a slightly uncomfortable conversation!

I take it you work for an auction house - how can I persuade them to sell to me outside of the auction? Will they still be liable for the fees? Will I? How would you structure a deal? Thankyou SO much if you can help!

OP posts:
dizzyupthegirl86 · 03/07/2022 20:31

LoonyIdea · 03/07/2022 20:16

Gosh I so so so hope they let me buy it!

it’s a gorgeous evening here tonight and I thought I might go and have a little trespass again. It’s vacant and remote so no one would see me…

It has a dovecot and was mentioned in Domesday. That alone makes me breathless!

Show quote history

Oh I think I know the place you’re talking about - it’s beautiful!

motogirl · 03/07/2022 20:32

If you buy at auction you usually have 28 days to complete. I strongly suggest trying to make an offer now

icedancerlenny · 03/07/2022 20:39

Have you considered stamp duty?

i don’t think it’ll work unless it doesn’t sell at auction unfortunately.

Original poster
LoonyIdea · 03/07/2022 20:48

Yes and if they’d take 499 so much the better

OP posts:
CheeryTulip · 03/07/2022 20:54

Is it the house that's really really pretty? If so, I'd lie in a permanent swoon....

DameCelia · 03/07/2022 20:55

@LoonyIdea property lawyer not an auctioneer unfortunately.

Your best bet is to contact the owner, make the offer you can afford but be completely honest about timescale. Realistically they aren't going to withdraw it from the auction, why would they lose the chance of selling it in a couple of weeks on the off chance you come up with a sum of money that is less than they might have got at auction?

Geneticsbunny · 03/07/2022 20:58

You will always regret it if you don't try. Go for it and good luck. Hope you get it and will look forwards to a full nerdy breakdown of all the cool historic features when you do.

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