My first property auction

On my journey to become a professional property investor and developer I went along to my first property auction last night. I had read over the details of the property beforehand and looked in to the previously sold prices as well as the current asking prices in the area. I didn’t intend to bid but went through the motions as I would have if I was going to to get the full experience. I had calculated that my top price for the property in question was to be £160,000. This was perhaps a little under what one could have gone up to as I was edging slighty on the safe side, but that’s the way I will play these things anyway especially in the early stages.

The auction was just for this single property and was held in a village pub. It was quite interesting to listen to the conversation the people behind us were having. They definitely seemed to be professionals and made up of at least one builder and an architect. The auction started off at what seemed to me (as a newbie) a mediocre pace then slowing to smaller increments if not pace then picking up to similar increments as it had started. It ended with one of the professionals behind us jumping in at the end and winning the auction for £190,000.

From their conversations afterwards it turns out the winner would have gone to £200k and that they actually thought it would have flown past £200k. This is obviously quite a bit higher than my £160k but one of these professionals did say that they had four properties close to where this one at auction was that they could not sell. So maybe my £160,000 was closer to the mark after all. We can but hope I am getting to know what I am doing, in my mind if not yet in practice.

– Eekins

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