You can often buy repossessed properties at heavy discounts at auctions. When lenders repossess properties, they usually unload the bulk of these via auctions. This is because the units can be sold relatively quickly within the ‘public domain’ – lenders cannot be seen to do backdoor deals.
The summer holidays are good times to visit auctions, only the ‘must sell’ properties are put through then, which pulls down prices, and there are more bargains about…
Consider looking at pre-auction offers, falling confidence and tighter lending mean that the sales rate at auction has fallen and many vendors are more agreeable to pre-auction offers.
Vendors’ reserves have often been close to the lower part of the guide price range but nowadays they are becoming more realistic, the auctioneer will advise on pre-auction offer; it varies between auctioneers.
Another potential area for bargains is the post-auction offer, if the auctioneer has a low sales rate and the next auction is a while away, you may have a chance of success, if the lot hasn’t sold at auction the bargaining strength is in your hands. Don’t assume that unsold lots are poor buys, some are, but others may be unsold for many reasons – an out-of-town lot, a lack of bidders on the day, a too high reserve – generally something around the bottom price range may secure.
Before rushing ahead, clearly you still need to follow due diligence, talk to David McKnight at Martin & Co Derby with regard to the letting or re-sale potential of particular areas in Derby and property types, our local experience can give you a sense of the market value of any auction property you are considering.
Call 01332 650068 for help and advice on all property matters whether buying, selling or letting anywhere in Derby.