Auction & Repossession Property Lists – A Guide for Landlords by Letting Focus
Many people think that the only way to buy a repossessed property is via an auction.
But the fact is that the vast majority of repossessed properties go through an estate agent first. Indeed, they only go on to auction if they fail to sell via an agent.
In my opinion, especially for those who need mortgage financing to buy one, it is a lot less risky for a buyer to find which estate agents handle repossessions (they don’t all do so) and then go and do some viewings and put a cheeky offer in with the agent.
The problem with buying repossessions at auctions is that at an auction you can get outbid so easily, and if you are, you can kiss goodbye to the cash you spent on your survey valuation fee and the legal costs you have already incurred.
Estate Agents and Repossessed Properties
Dealing with an estate agent, is in many ways so much better because the agent is bound to pass the offer on to the mortgage co who is repossessing and often the lender will accept low offers.
And whilst lenders usually insist that estate agents keep on marketing a repossession up until exchange, in practice I know that most stop effective marketing once they have found a good buyer (especially given the fact they don’t earn much from mortgage cos for marketing these repossessed properties)
In my opinion, auctions are great for residential property providing, 1) you are happy to buy a wreck or something that needs a bit of work doing on it and / or 2) you don’t need a mortgage.
They can be good for more standard properties when the property market is down on its proverbial bottom but the wider market has not cottoned on yet - as during the period from September 2008 to February 2009.
For all other periods of time and type of situations, you need to get out there and play hard ball with estate agents or source motivated buyers using your own efforts.
Repossession Lists
Oh, and still on the subject of auctions, now and again I hear some supposed expert claiming that for a few pounds you can get access to Repossession Lists from mortgage lenders before anyone else does.
Using this mythical list you can, of course, get in first and get these “below market value properties” for a song.
You may a s well send £30 to Prince Whatever who emailed you today from some dodgy state somewhere in return for which he will supposedly send you a load of money from his currently frozen account in Switzerland.
The fact is that Special Repossession Lists are as rare as a straight man who likes “Sex and The City” – which is to say, they are actually non existent.
Mortgage companies repossessing properties are legally bound to get the best price for the property they are repossessing.
As such they have to be squeaky clean about how they do it – and this means they have to do widespread marketing - which usually means marketing through estate agents first.
There are no secret lists – only people after your money.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the buy to let experts and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased advice for landlords and property investors on a one to one mentoring and coaching basis as well as occasional group seminars.
Property clubs are property advice is still mainly unregulated.
As I am not linked to a property company, developer, estate agency or bridging loan provider I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.
In a nutshell, we help you make money in property by showing you the ways that work and which are of minimal risk to you.
CHECK OUT THESE PAGES AT OUR SITE LETTINGFOCUS.COM:
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investing Seminar and Networking Event
We have GREAT OFFERS on a range of products for landlords too, click here: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?
Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!
Copyright of Blog: David Lawrenson 2009. This blog is updated roughly once a week usually on a Monday or Tuesday.
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But the fact is that the vast majority of repossessed properties go through an estate agent first. Indeed, they only go on to auction if they fail to sell via an agent.
In my opinion, especially for those who need mortgage financing to buy one, it is a lot less risky for a buyer to find which estate agents handle repossessions (they don’t all do so) and then go and do some viewings and put a cheeky offer in with the agent.
The problem with buying repossessions at auctions is that at an auction you can get outbid so easily, and if you are, you can kiss goodbye to the cash you spent on your survey valuation fee and the legal costs you have already incurred.
Estate Agents and Repossessed Properties
Dealing with an estate agent, is in many ways so much better because the agent is bound to pass the offer on to the mortgage co who is repossessing and often the lender will accept low offers.
And whilst lenders usually insist that estate agents keep on marketing a repossession up until exchange, in practice I know that most stop effective marketing once they have found a good buyer (especially given the fact they don’t earn much from mortgage cos for marketing these repossessed properties)
In my opinion, auctions are great for residential property providing, 1) you are happy to buy a wreck or something that needs a bit of work doing on it and / or 2) you don’t need a mortgage.
They can be good for more standard properties when the property market is down on its proverbial bottom but the wider market has not cottoned on yet - as during the period from September 2008 to February 2009.
For all other periods of time and type of situations, you need to get out there and play hard ball with estate agents or source motivated buyers using your own efforts.
Repossession Lists
Oh, and still on the subject of auctions, now and again I hear some supposed expert claiming that for a few pounds you can get access to Repossession Lists from mortgage lenders before anyone else does.
Using this mythical list you can, of course, get in first and get these “below market value properties” for a song.
You may a s well send £30 to Prince Whatever who emailed you today from some dodgy state somewhere in return for which he will supposedly send you a load of money from his currently frozen account in Switzerland.
The fact is that Special Repossession Lists are as rare as a straight man who likes “Sex and The City” – which is to say, they are actually non existent.
Mortgage companies repossessing properties are legally bound to get the best price for the property they are repossessing.
As such they have to be squeaky clean about how they do it – and this means they have to do widespread marketing - which usually means marketing through estate agents first.
There are no secret lists – only people after your money.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the buy to let experts and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased advice for landlords and property investors on a one to one mentoring and coaching basis as well as occasional group seminars.
Property clubs are property advice is still mainly unregulated.
As I am not linked to a property company, developer, estate agency or bridging loan provider I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.
In a nutshell, we help you make money in property by showing you the ways that work and which are of minimal risk to you.
CHECK OUT THESE PAGES AT OUR SITE LETTINGFOCUS.COM:
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investing Seminar and Networking Event
We have GREAT OFFERS on a range of products for landlords too, click here: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?
Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!
Copyright of Blog: David Lawrenson 2009. This blog is updated roughly once a week usually on a Monday or Tuesday.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
Over on the right hand side under all the previous blog entries you will find a button which says “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment to this post, simply click on “link to this post” to add your comment and to view comments of other people.
Labels: Auctions, Below market value property, BMV, buying property at auction, property auctions, reposessions, repossessed property, Repossession Lists
This entry was posted by lettingfocus, on
Monday, November 16, 2009.
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