Tuesday, 3 November 2015

Beware of the fees on Auction Deals - Wood Street in Darwen, It's in the auction for a reason!

Auctions - Buyer Beware!

We're seeing more and more Estate Agents partnering up with Auction Houses across the UK and Darwen is getting it's fair share of stock too for the auction rooms.

I get Landlords and Investors calling me all the time to ask about various properties they've seen listed for auction and I'm always happy to offer my opinion. Given I know every street in Darwen I can usually offer some good advice on what I think.

I got a call last Friday about this one on Wood Street, here....

Auction Property - Wood Street Darwen

It wasn't a lengthy chat but here's a few of the points we discussed...

Now with this one there's a few things to keep in mind.

Firstly alarm bells should ring - simply because it's in the auction. It's in the auction for a reason! (Not that I'm cynical or anything!)

Local Knowledge is Key.

Now luckily, I'm very familiar with this short row of properties here on Wood St, including the one next door to this.

Non Refundable Fees

If you're thinking of putting a bid on this bear in mind you will have to pay a buyers premium of upto £6k (some or all of which is non-refundable). So don't forget to add this to your purchase price.

No doubt you'll have studied the pictures? Yep, it has a list of issues... which need sorting before any responsible Landlord or Agent would rent this baby out. If housing standards made a visit they'll be leaving you a list of jobs for sure.

So on top of your bid we have to add the buyers premium and the cost of remedial works...

Do I think it's work looking at? Well, given the numbers - errr No! 

That was pretty much my take on this one.

The other thing to note about properties in auctions - read the Legal Pack thoroughly.  

If you like gambling then auction properties are probably up your street, but for most people I advise they avoid them alone. Ive seen too many people buy at auction and get their fingers burnt.  Auctions are for the seriously experienced investor.

If you have got your sights on an auction property in Darwen or this area, get in touch. You never know it could save you making a big mistake!

You know where I am...

Paul Ainsworth Lord
Darwen Property Expert 

Ainsworth Lord Estates
49 Market Street 
Lancs BB3 1PS

or call me on 01254 760660

or ping me an email...


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