The £75,000 Liverpool purchase

In our March 2025 case study, we described a property acquired prior to auction for £75,000. The original account recorded a new roof, external insulation, updated electrics, a new boiler, a well presented interior and tenants already in occupation.

Another property on the same road was advertised by an estate agent at offers over £125,000. Seeing both prompted a useful comparison of price, condition and energy performance.

There was also an EPC discrepancy: the auction information described an E rating, while our research indicated C. Checking the underlying information helped us understand the property more clearly than the headline description suggested.

Why “67% more” and “40% less” both describe the comparison

Using £125,000 as the comparison figure, the difference from £75,000 is £50,000. The percentage changes according to the starting point.

The £75,000 was a purchase price. The £125,000 was an asking benchmark, with offers sought above it. The comparison illustrates the gap between the 2 figures; it does not, by itself, prove that the property bought was 40% below independently established market value.

To assess below market value property in Liverpool, use relevant completed sales and adjust for location, size, condition, tenure and any differences in the buildings.

Build an evidence file before calling a property below market value

Record the purchase price and each comparison on a separate line. For each comparable, note the address, sale or listing date, size, tenure, condition, occupancy and the source. Mark clearly whether the figure is an asking price, completed sale or mortgage valuation.

• Completed sales: start with HM Land Registry sold prices, then investigate how closely each property matches.
• Energy performance: check the address and assessment date in the official energy certificate service. If the listing and certificate differ, establish which information is current.
• Works and tenancy: record the cost of making each property suitable for your strategy, the existing rent and any difference from the market rent assessment.
• Your decision: explain the adjustments behind your estimated value and maximum offer. Ask for professional valuation advice where the evidence is thin.

Use several genuinely comparable completed sales to support your assessment, and explain the differences between them. For a separate comparison focused on income, see the £60,000 and £114,000 rental yield example.

What the reported 12% rental yield means

The original case quoted a 12% yield at market rent. Read this as an indicative gross calculation based on the £75,000 purchase price, before costs.

Net income depends on the rent achieved, empty periods, management, maintenance, insurance and other property costs. Finance and tax affect the owner’s overall return. Include acquisition costs when assessing the return on the money you invest.

Buying property prior to auction

Some sellers will consider an offer before the auction date. Ask the auctioneer whether the seller is willing to negotiate, then make an offer supported by a clear assessment and a credible plan to complete.

Prepare the legal review and finance alongside the offer. Check all charges and the special conditions, and establish when the transaction becomes binding. An agreement prior to auction still needs careful contract advice.

Our property auctions service covers the different stages of an auction purchase. The buying property at auction guide explains the questions to address before committing.

Why local property sourcing matters

A useful sourcing service goes beyond sending a link to a listing. It should help you understand the street, relevant sales, rental demand, condition, likely works and whether the transaction suits your funds and objectives.

That is the starting point for our Property Sourcing Liverpool service. We research opportunities through auctions, receivers, administrators and other distressed situations, then assess them against your investment brief.

For a buy, refurbish, refinance and rent strategy, buying well can create room for costs and valuation uncertainty. Any refinance still depends on the lender’s assessment, the property and the borrowing terms available.

Read our approach to property investment in Liverpool, compare other purchases in the sourcing track record or develop your own judgement through property auction courses with Dominic Farrell.