Can I Buy a Property If it Doesn't Sell?

Not every property that goes into auction is snatched up straight away. There are a number of properties that nobody will bid on and these will be recycled into the next auction.

If you do see a property at auction that you want there is the possibility that the auctioneer will sell it to you after the auction is over.

These few questions should give you a good idea of what to look out for when a property is unsold and if you stand a good chance of being able to snap it up.

1) What Type Of Property Is It?

• A)It’s a repossessed property below market value
• B)It’s a rundown house that needs a lot of work
• C)It’s a large/expensive house

2) How Much Are You Prepared To Offer?

• A)The price it is listed for
• B)Around 10% lower than it is advertised
• C)Under 20% of the original marked price

3) Are You Interested In Any Other Properties?

• A)Yes there are a few other properties that didn’t sell that I want to buy
• B)There was one other property
• C)There were no other properties I was interested in

4) How Many Times Has The Property Been Shown?

• A)This is its second time at auction
• B)I’m not sure
• C)It is the first time at auction

Mostly A - You Have A Good Chance

Properties that do not sell at auction are normally not sold for a reason, it could be because they are overpriced or it could be because they are run down. From your answers it sounds like your offer would be accepted for a property which had not sold.

These properties still need to be sold and if you can take them off an auctioneer’s hands for a reasonable price they will be happy to accept.

If you are willing to offer the asking price for the property there should be no reason you get turned away, unless off course somebody else is also after the property and then you will have to outbid them.

If It is the second time it has appeared at auction there will also be an extra incentive for the auctioneer to want to sell it. If you are an investor or looking to build a buy-to-let portfolio you could also buy in bulk and buy a number of properties that did not sell for a discount price.

Mostly B - It Is Worth A Try

Just because a property has not sold it does not necessarily mean that the auctioneer will be willing to accept any old offer for the property. By all means haggle with the auctioneer but also offer them a reasonable price and not a lot lower than what it was originally advertised for.

You should also remember that just because it is cheap it does not necessarily mean it is a bargain, you should still be cautious and make sure you know at least a bit about the area you are buying in before you jump in head first. You have nothing to lose by approaching the auctioneer and offering them what you think the property is worth.

Mostly C - You Might Not Be Successful

Unfortunately it doesn’t sound like you stand a good chance of successfully buying a property that fails to sell, but don’t let this stop you trying though.

Some houses don’t sell at auction because they are of a high standard. It is common to find large expensive properties that do not sell at auction because nobody has gone there looking for this type of property. Auctioneers will usually want to keep hold of these properties or try and sell them another way.

If you can’t offer close to the reserve price an auctioneer is also unlikely to accept your bid.

Properties are usually on sale at auctions because the owner wants a fast sale, but they are also normally there because they might need some work or renovation. In some circumstances sellers are so eager to sell that they will consider a lower than advertised asking price, while others might be more firm and stand their ground.

You have nothing to lose by trying to pick up the leftover properties at the end of an auction, as this is predominantly where the bargains can be found. You will need to carry out the same checks on a property that you buy after the auction as you would during. It might be selling for a knock down price, but this is even more reasons to do your homework and get the property checked out.

There are however moments when you just have to throw caution to the wind and buy a property which is too good an opportunity to miss.