Guide price at house auction

celticbhoy27

hi guys, hoping some of ye have experience of bidding on a house at auction, or even any auctioneers who may be lurking about if so would just like to pick your brains, just went to see a house which is up for auction mid april, the guide price on it (according to the paper is 175,000.
now from looking solely at the outside it looks more like a 300k house, really quiet impressive. i rang the auctioneer to see if the owners were willing to listen to offers prior to auction, but apparently the actual owner has passed away and therefore the property can not be sold prior to the auction date. was just wondering (in a long winded way, appologies) in the current climate how close to the guide price do you think properties normally go for at auction??
thanks in advance

doubtfir3

celticbhoy27 wrote: »

hi guys, hoping some of ye have experience of bidding on a house at auction, or even any auctioneers who may be lurking about if so would just like to pick your brains, just went to see a house which is up for auction mid april, the guide price on it (according to the paper is 175,000.
now from looking solely at the outside it looks more like a 300k house, really quiet impressive. i rang the auctioneer to see if the owners were willing to listen to offers prior to auction, but apparently the actual owner has passed away and therefore the property can not be sold prior to the auction date. was just wondering (in a long winded way, appologies) in the current climate how close to the guide price do you think properties normally go for at auction??
thanks in advance

To me it would depend entirely on the number/type of people in the auction house on the day.

It would depend on the condition of the house, the number of other interested parties and location.

You said yourself that you see it more as a 300k house.. maybe there are a few more out there who think the same.

The only advise I can give on an auction is to decide how much you can afford, see how much work needs to be done to the house (plumbing, damp proofing, electrics, kitchen, bathroom, floors etc) and then subtract this from the price you can afford.

After that simply bid up to the amount... (total afforable - cost of work).

Cathmandooo

In the current market for an auction it is a great idea to drop the guide price down low. It will probably generate a lot of interest and people would be more willing to make it to the auction and put in their bid.

It's only worth what someone is willing to pay for it. Pretty impossible to predict in a bid situation. If you want to bid then do your research on the place and stick to your limit. If you like the place then it's worth a try, you might pick up a bargain! However I would say that if it's being sold off for inheritance purposes it could probably be withdrawn easily if a price in their heads isn't reached.

celticbhoy27

Cathooo wrote: »

In the current market for an auction it is a great idea to drop the guide price down low. It will probably generate a lot of interest and people would be more willing to make it to the auction and put in their bid.

It's only worth what someone is willing to pay for it. Pretty impossible to predict in a bid situation. If you want to bid then do your research on the place and stick to your limit. If you like the place then it's worth a try, you might pick up a bargain! However I would say that if it's being sold off for inheritance purposes it could probably be withdrawn easily if a price in their heads isn't reached.

thanks for the replies guys, yeah the fact that its being sold for inheritance makes it a bit of a gamble alright. im a first time buyer new to all these scenarios so really appreciate your input guys

antiskeptic

celticbhoy27 wrote: »

thanks for the replies guys, yeah the fact that its being sold for inheritance makes it a bit of a gamble alright. im a first time buyer new to all these scenarios so really appreciate your input guys

There's no need to gamble. Find out the worth of the house by establishing the realistic asking price of similar houses (area, size, condition). Now you know what the realistic price is you'll know what your limit is come auction day. Bid in the hope that there won't be many other bidders and that the fact it's an "inheritance house" means there's less pressure on the seller to achieve a particular minimum (which would be the case if the seller was moving up). You might get a bargain. You might get it at market value.

Given that you might only get it at market value, make sure before the auction, that paying your limit will result in you're being happy with what you've just purchased. It's one thing being thrilled with getting a bargain at auction. It's another to find you've paid market price and that it's not really the house you want.

As with all kinds of auctions. Fix your limit in advance and stick to it.

Victor

celticbhoy27 wrote: »

apparently the actual owner has passed away

"May require work" comes to mind.

kennyb3

I presume this is what your taliking about

http://www.thepropertypin.com/viewtopic.php?f=10&t=28733

unless your getting a mansion €300k for a house in kilkenny is a hell of a lot of money

Blackjack

kennyb3 wrote: »

I presume this is what your taliking about

http://www.thepropertypin.com/viewtopic.php?f=10&t=28733

unless your getting a mansion €300k for a house in kilkenny is a hell of a lot of money

Unfortunately what people lost sight of throughout the boom was that regardless of where you are in the Country, €300k is a hell of a lot of money, unless you're getting a mansion.

stepbar

A house (IMO) is worth only what you can rent it for. Anything else and well, as the saying goes.... "buyer beware"....