There are things to consider when buying refurbishment type properties at auction. Here we discuss the important ones.
0:33 Lots of potential opportunities for buying stock at auctions for refurbishment projects.
1:13 The market is currently very buoyant for refurbishment stock.
2:01 There are more property refurbishments at auction than estate agents but all are not always a great deal.
2:28 Auction properties combined with estate agents may give you the best mix.
2:13 Potential options are there if focusing on estate agents as there’s less competition.
Hi, it’s Rob from Property Investments UK. We’ve got a number of questions we’ve recently had regarding property investments, refurbishments and specifically flips as well at the moment. It’s quite a busy market for that. So, I’m just going to cover a couple of questions for today.
So one of the questions we’ve had in from a client is: Is buying at auction the best place to find refurbishment type deals? And yes, auctions can be great for trying to finding refurbishment stock and there is a lot of potential opportunities at auction.
There are more property refurbishments than let’s say an estate agent would have. So, if you are focusing on one core area, one postcode maybe or one city or town, then the likelihood is auction properties combined with an estate agent is going to give you the best mix across the board. If you just wanted to focus on auction properties there will be a couple of good refurbishment properties there.
So there’s other videos that we have done that you probably see below that you can see some of the problems associated with buying at auction which is very specifically on refurbishment properties and are they the best place to buy at auction.
Currently, the market is very buoyant. The market is very busy for what we are seeing being sold at auction for just refurbishment stock. So, if you had just wanted to focus on those types of deals, you might go and use properties with the estate agents and there is bizarrely less competition on those than there might be with some of the auction stuff.
Because with auction, people see the bargains and with the auctions while you’ve got a lot of competition from builders, investors, even homeowners that wanted to buy the same types of properties and the same type of stock.
So, it really depends on the time of year, it depends on the actual market – whether it’s going up, down or sideways, in your particular preference or target area that you’re trying to incorporate. And, yes, there are some great bargains to be had at auction.
Yes, there are some great refurbishment properties to be had at auctions but it’s not as simple as saying across the board every single property that goes to auction is a bargain, every single refurbishment property that goes to auction is going to be a great deal and worth looking at.
Sometimes, it might sound strange, but just focusing on the estates agents will give you potentially better options than auction properties. We like to take a competitive market approach. When working with clients we look at auction listings and the estates agent listings to get the best of both worlds. So, yeah, it’s good to look at auctions for refurbishment projects.
There are some other videos that we’ve talked about, again the links are below here, that go into a bit more detail in terms of what to look for in auctions and how you can maybe spot potential properties as well.