Re: Guide Prices at Property Auctions
I watch 'homes under the hammer' a fair bit, and it's always difficult to tell. You see some people picking up bargains and by the time they've done the work that was needed, they made a tidy profit. But I've seen others who have paid almost market value and still needed to do work.
If I were to buy at an auction, I'd work out roughly how much I needed to spend to get the house in very good nick, then look at other houses in the area and calculate how much it may be worth once done. The price I paid at the auction would need to be at a point where even with spending the money to do it up, there'd still be profit in it, or else what's the point?
Have you thought about looking at repossessions? We bought ours as a repo just over a year ago. Paid £82k for a 4 bedroomed house with a drive and garage. It was actually fine to live in after a few minor repairs and a lick of paint. We're almost finished the upstairs of the house now, and reckon it would go on the market for around £115k now.
"By the way, what have you done that's so great? Do you create anything, or just critisize others work and belittle their motivations?" - Steve Jobs