Why do some houses/ flats go to auction and some don't?

[LandladyMaybe]

Who decides whether or not a house is sold at auction?

Also, what happens if a peppery gets no bids?

Im not an expert but I'd think the reasons for putting a house up for auction are: Quicker sale, especially as there's no chain. No need to go through estate agents. Attracts cash buyers.

My great uncle sold his bungalow through auction as it had serious structural issues. He was realistic about it and reflected this in the reserve price and meant he didn't have to faff around with an offers, then surveys, buyers woth mortgages and a possible reduction ect.

Un-mortageable properties, rental portfolio's ect. seem to go quicker at auction as more likely to attract experienced developers.

I guess if they get zero bids or they don't meet their reserve then they may just have to go to auction the next time.

Issues I can see are that it might not make market value and you can never be sure exactly how much you will get (and no room for negotiation).

I would think if you were selling a normal house, under normal circumstances, that may not be appealing.

Yeah, it's usually because they're unmortgageable or there are serious issues ie landslip (I saw this recently), no kitchen/bathroom, listed property needing £££ spending on it etc. Auction guarantees you a fast cash sale.

The person who decides will be whoever has responsibility for it. The home owner or the bank, or someone enacting probate in the event of a death. If the property gets no bids it might be sold after the auction if someone cuts a deal, this happens occasionally. Otherwise it may well go into a different auction house.

So you can't buy a property at auction with a mortgage?

I don't think so
But some people get bridging loans from companies that specially cater for auction stuff. It's high interest though so risky stuff

You usually effectively exchange for the property on the day of auction and have 28days from then to complete. So it is not really possible to get any surveys done and would be very difficult to arrange a mortgage in time. Also quite a lot of auction properties are unmortgagable e.g. non standard construction, uninhabitable, structural issues, etc.
If a bank repossesses a house it will usually be auctioned and people sometimes do it because they need or want a quick Sale.

Another reason for auction is if it's being sold by charity/local authority as then a public auction helps show that they got market value rather than selling it cheap to a mate. (Their properties also often need work so are more suited to developers who are more able to buy at auction).

I sold my listed building at auction. I had about 40 viewings with 'too much work' feedback and was just exhausted after 18 months on the market.

A property in the next road to mine is up for auction next month due to being uninhabitable. Very dilapidated, no heating, no functioning kitchen or bathroom, garden like a forest, holes in the roof and floor etc. I've seen the photos online but a friend who is a local estate agent was initially asked to value it and he has told me the back story (though it's been obvious there was a problem to anyone walking past for a long time).

It was previously a serious hoarder situation, the owner died there, his body wasn't discovered for some time and no relatives have come forward. Since then, it's been empty for a few years; the council have had to step up to deal with things I think, but it's all taken a while.

I doubt any one other than a developer would be interested as there is so much work to do, and but even if they were, I very much doubt you would would be able to secure a mortgage on it. You'd need to take equity out of another property or have a big bunch of cash in the bank. Hence the auction sale.

Other reasons for selling at auction in general might be needing a quick sale, someone selling investment properties (maybe with tenants in situ) and structural issues or Japanese knotweed on the property.

Oh wow! I was considering buying at auction but this thread had put me right off!

There seemed to be quite a lot of properties sold by "the modern method of auction" which seems to generate a lot of money for those selling them. I looked at the details when the DC were looking at houses and there seems lots of charges e.g. several thousand for a buyers pack. They seemed to be advertised atreally low guide prices, but I expect they were sold for a lot more. Most of them didn't appear to be in poor condition, although some were in really bad condition.

I think you can buy with a mortgage and not all the properties are wrecks - some will be mortgage defaulters. It's not a market for the inexperienced though.

I’ve just bought a house via auction, cash buy, only 20 year old house. Was a landlord who wanted a quick sale, building survey and all searches have come back fine

The one I bought was through modern auction and have to admit the guide price was set 30,000 under what it was worth