Working with Auctions

Hi everyone,

Ive set up partnerships with two Auction Houses where they are offering discount to owners of empty homes, who I work with.

The problem I have is, who the property gets sold to and what they do with it.

Has anyone any simliar arrangements in place with Auction Houses where they have some control over what the property is used for when sold.

Any good practice around working with Auctions would be very useful

Many thanks

Heather (Rossendale)

Forums: 
Help!

Hi Heather

You have no control over who buys the properties in auction or what eventually happens to them.  The auction room is open to the public and any buyer who has registered with the auction can buy the house.  We have a really good relationship with Auction House West Yorkshire - it's a franchise and the Leeds based team are amazing.  We also get REALLY spectacular results.  People think putting their houses in auction is like giving them away but it's not the case.  There is no shortage of buyers.  If you have already chosen your local branch of Auction House then they will be great - if you have one and you haven't chosen them then please do.  We tired 3 differnt auctions and Auction House were the best by a mile.  Very professional and very patient with our sometimes very difficult owners - and they also offer good discounts.

The issue you raise is an interesting one and one we have wrestled with because of course lots of auction properties are bought be investor landlords and they can end up in the private rented sector in poor condition.  It's hard and we'd prefer ours not to end up like that.  We do try other methods to sell them liek local housing organisations etc and sometimes that works out - we had an old chap who sold his house to a charity for £45,000 less than the auction value because he wanted it to remain as a family house.  Really, as you are working with the empty home owner, your job is to get the best result for them so you can't do anything to control who buys the property - you just need to auction to get the best sale price.  Happy to chat this through with you - we've been doing this for years and usually have at least one property in each auction - in December we had 3.  07840 167258 Gill, Empty Homes Doctor

Hi Gill many thanks for your email very intresting. I would love to have a  chat with you and find out more. I will give you  call.

Thanks

Heather

We have had some excellent results with auctions and have a good relationship with the auction houses.  .  I usually try to attend the auction to see who has purchased the property and then introduce myself before they leave.  This is very useful because you get to know what their plans are and can offer any loan schemes or grants which may be available.

I am also  fortunate enough to have a small budget which allows me to purchase a property in need of renovation and to undertake the renovation works.  The property is then advertised on our Affordable Housing website and sold on a shared equity basis.  Proceeds of sale are recycled into the scheme ready for the next property.  Owners are encouraged to get the property independently valued and to explore other options for selling e.g. auction, estate agent.  However, many like the idea of their property being sold to local first time buyers. 

 

Hi Gwenda

Thanks for your feedback, yes thats a good idea. Im looking to do that at the next auction.

The only problem is Ive no funding at all, so not really got much to offer them apart from to try and build a relationship that allows me to monitor that the property does go back into use and they dont sit on it.