X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Refurbish/Develop

    How to find property needing work

    From my experience auctions differ from area to area and auctioneer to auctioneer. In my patch in Glasgow there are one or two new companies opened up in the last couple of years. I have purchased property from auctions in the past and did well but i have also been lucky with some bad buys. I bought a flat for £2.5K which i discovered was one room with no toilet. I later sold it for £15K only for the buyer to sell it at auction for about 30K. This all happened within 3 months. I know the guy that ended up owning it and he eventually rented it out a year later after spending a fortune on it. I know that if the same thing happened today in this market i would have some problems selling it. I heard a story recently of a woman in Glasgow who baught a flat for approx 90K in a decent new build block at auction, paid the deposit then failed to complete in the standard time due to lending issues. She lost about 14K. The seller was a bit of a git and would not extend the time.

     

    Therefore if you dont have cast iron funds in place avoid the auction and if you have and are a novice i would say you can do better elsewhere if you are considering Scottish auctions.

     

     

     

     

    0
    0
    hi david is right you need to be careful at auctions you should definately check legal pack , special conditions etc. i went to 1 in glasgow to bid on a property and by luck my solicitor whos office is round the corner from where auction was being held, came round in his lunch break and spotted a special condition that the buyer had to pay all sellers costs totalling 3k plus complete in 2 weeks. if he hadnt spotted this i would have had to find an extra 3k from somewhere and probably fail to complete losing 6 or 7k 
    David Wright said:

    From my experience auctions differ from area to area and auctioneer to auctioneer. In my patch in Glasgow there are one or two new companies opened up in the last couple of years. I have purchased property from auctions in the past and did well but i have also been lucky with some bad buys. I bought a flat for £2.5K which i discovered was one room with no toilet. I later sold it for £15K only for the buyer to sell it at auction for about 30K. This all happened within 3 months. I know the guy that ended up owning it and he eventually rented it out a year later after spending a fortune on it. I know that if the same thing happened today in this market i would have some problems selling it. I heard a story recently of a woman in Glasgow who baught a flat for approx 90K in a decent new build block at auction, paid the deposit then failed to complete in the standard time due to lending issues. She lost about 14K. The seller was a bit of a git and would not extend the time.

     

    Therefore if you dont have cast iron funds in place avoid the auction and if you have and are a novice i would say you can do better elsewhere if you are considering Scottish auctions.

     

     

     

     

    0
    0

    Hello Jacob, i will expand slightly. i knew the buyer. they were two weeks beyond the 28 days which is the legal date the seller can withdraw. on the 15th day the seller pulled the plug. the seller had put the property in the auction without the hips report. they then organised it retrospectivly and thus holding up the loan survey and the loan application. with this in mind and the fact he 100% knew that the buyers wanted to continue i think its fair to call him a git. he refused calls and the buyer actually went to his place of work and offered him an extra 2k. the seller was within his rights but in my view a thief. i to have had people withdraw from a sale and kept the deposit but only after they did not want to continue as they viewed it retrospectivly. i think in that instance it was strictly business but in this case not.

     

    i refered to two new auction houses. there are deals but i understand that nothing is selling. the reason is i believe two fold. mainly becauce there is no finance available and investors are using it as a vehicle to get rid of stock. this means that if the auction is full of investors they wont really buy as i would not consider the properties for sale as genuine auction properties. i know there may be one or two in there but they are mostly more expensive family homes and what i call "pregnant cats"(things that nobody wants). i am going to contadict myself a bit further now as i am going to sell some stuff through the auction this year. lower level stuff (20-80k). i have a loan with a lender who went bust and they have just increaced the rate. i dont really want to sell but the lender has given me 2 years to sort it. if i get 10% bmv i could live with that. its all good stuff if you like that kind of thing - tenanted and high yields.

     

    cheers jacobJacob Mirza said:

    Hi David-

     

    With all due respect, why call the seller, a "GIT"? Understanding that they are not doing anything wrong.

     

    I buy and sell a lot through auctions. When I buy, I am under pressure to close on time with cash or finance. Under Scottish terms, missives are concluded when the hammer goes down and is a contract.

     

    On the other hand, if I am selling through an auction, I expect the other party to close in 28 days or bind by whatever the auction terms are and I typically sell for 10% BMV for a quick sale. There are times when I have bought other properties relying on the purchaser to comply with their contractual conditions under the auction terms. If they don't, I am well within my contractual rights to not only forfeit their deposit, but to pursue them for any liquid damages that I may incur because of their misjudgment/error. I expect that from the seller, when I am a buyer (IT IS ONLY FAIR).

     

    I think I have a very good idea about the "new" auction house in Glasgow and I think they are making a lot of money but I have not seen any REAL Deals lately. May be it is that time of the year.

     

     

    David Wright said:

     The seller was a bit of a git and would not extend the time.

     

    Therefore if you dont have cast iron funds in place avoid the auction and if you have and are a novice i would say you can do better elsewhere if you are considering Scottish auctions.

     

     

     

     

    0
    0

    So Git or no Git?

     

    This was not a development property. It was a new build. The auctioneer should have insisted on a HIPS report so they were in the wrong also. The property was marketed in an open forum and not a private sale therefore it required to have a HIPS report under Scottish Law.

     

    Seller wants to sell property.

    seller recieves good offer and healthy deposit.

    seller refuses access(legally) but delays HIPS significantly to delay loan process.

    One day over settlement date withdraws keeping healthy deposit.

     

    My opinion Git.

     

    You are not the seller are you?

    0
    0