Selling at auction

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    #16
    Flying so youre saying my best option is to sell via estate agent and leave tenant there until an offer is accepted and then give 2 month's notice so the buyer can have it empty? Is it possible tenant can still drag heels and possibly cause the deal to collapse?

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      #17
      Originally posted by amazondean View Post
      If a property at auction has no reserve, the auctioneer cannot bid the price up, otherwise the auctioneer might end up with it!. The price will end up being what the property is actually worth.

      If the property has a reserve, the auctioneer can and does, bid the price up to, but not including the reserve, if there are no real bids. When it doesn't sell it looks like it only just missed the guide price, when in reality it may have only reached a fraction of the final price if it was left to the public.
      This is completely wrong. What you are saying is if only one buyer turns up for a property at auction (and no one else has decided to bid) and they waited for the price to drop to 50 pounds then this would be the market value? It is indeed muddled thinking like this which causes people to make such a mess in business. There are regularly 30 properties in large auctions which do not sell - this does not mean they are worth a low amount, it just means no one bided.

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        #18
        I’ve sold plenty of tenanted properties over the years to other landlords who want them with the tenants in situ.

        Pros and cons of auctions (as a seller);

        Pros
        - when the hammer drops, you’ve exchanged contracts
        - can be a much quicker sale than if you did it the conventional way
        - a room full of people can, for the right property, push the price up

        Cons
        - larger than average selling fees, 2.5-3% is normal
        - other than setting a reserve, you have no say in the final price you sell for
        - advertising by the auction house can be poor

        Where is the property located? PM me if you’d rather, I know a lot of investors.

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          #19
          Originally posted by hech123 View Post

          This is completely wrong. What you are saying is if only one buyer turns up for a property at auction (and no one else has decided to bid) and they waited for the price to drop to 50 pounds then this would be the market value? It is indeed muddled thinking like this which causes people to make such a mess in business. There are regularly 30 properties in large auctions which do not sell - this does not mean they are worth a low amount, it just means no one bided.
          I am not sure what you are trying to say really. It wont get to £50 because there is a reserve and the auctioneer will bid it up to whatever they like near the reserve, if there are no bids or only one bidder .

          If there was no reserve, then yes, you could end up with a house for £50 if know one else wanted it. As you say, it most likely wouldn't get that low would it, because there would always be someone wanting it cheap, even if they didn't really want it. So a 25% reduction (as I mentioned earlier in the post) on what people think it is worth is very possible!

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            #20
            Your comment was if properties did not have reserves we would see what they are worth. My point is not having a reserve does not make you see what it is worth, it will in some cases were you get fair bidding. In other cases some properties will not get interest and not get bidders. My point of 50 pound was extreme - In an auction room ever person has not seen every property so if you have one which no one has viewed they would obviously pay a lot less for it - would this make that property worth less?

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