๐ช๐ต๐ ๐ฃ๐ฎ๐ ๐ข๐๐ฒ๐ฟ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฉ๐ฎ๐น๐๐ฒ ๐ฎ๐ ๐๐๐ฐ๐๐ถ๐ผ๐ป? ๐๐โ๐ ๐ ๐ฎ๐ฑ๐ป๐ฒ๐๐.
Tuesday 16th September 2025
๐ช๐ต๐ ๐ฃ๐ฎ๐ ๐ข๐๐ฒ๐ฟ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฉ๐ฎ๐น๐๐ฒ ๐ฎ๐ ๐๐๐ฐ๐๐ถ๐ผ๐ป? ๐๐โ๐ ๐ ๐ฎ๐ฑ๐ป๐ฒ๐๐.
Credit where itโs due: Liverpoolโs two main auction houses have delivered strong results for sellers this past week or so, often outpacing what many would expect via a traditional estate agent.
However, some buyers need to pause and take a breath.
๐ช๐ต๐ฒ๐ป โ๐ช๐ถ๐ป๐ป๐ถ๐ป๐ดโ ๐ ๐ฒ๐ฎ๐ป๐ ๐๐ผ๐๐ถ๐ป๐ด
I watched yesterdayโs online auction in disbelief as several โinvestorsโ and sourcing agents paid over market value, in some cases, well over, for properties that still need work. Add auction fees, the sellerโs legal fees, your own legals, and often a sourcing fee, and the numbers spiral.
๐๐ ๐ฎ๐บ๐ฝ๐น๐ฒ:
โข A 2-bed freehold needing some work sold for ยฃ110,000.
โข Our maximum bid was: ยฃ78,000. Two bidders fought to โwin.โ
โข True winner: the seller and the 'loser' who didnโt overpay.
On comparables and fundamentals, we valued the finished property at ยฃ90,000 - ยฃ95,000 (surveyorsโ variance included).
Spend - ยฃ5,000 to make it lettable, and youโre in at ยฃ115,000. Add estimated fees of ยฃ5,840 and youโre at ยฃ120,840 before SDLT, for a modest 2-bed in an average area of Liverpool. Meanwhile, ๐๐ต๐ฒ ๐น๐ฎ๐๐ ๐๐๐ผ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ฟ๐ฎ๐ฏ๐น๐ฒ ๐๐ฎ๐น๐ฒ๐ (๐ผ๐ป๐น๐ ๐ฏ ๐บ๐ผ๐ป๐๐ต๐ ๐ฎ๐ด๐ผ) ๐ถ๐ป ๐๐๐ป๐ฒ ๐ฎ๐ฌ๐ฎ๐ฑ ๐๐ฒ๐ฟ๐ฒ ยฃ๐ด๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฒ๐ฎ๐ฐ๐ต. Whereโs the margin?
Market rent ยฃ9,540 pa
๐๐ผ๐ ๐๐ผ ๐๐๐ ๐ช๐ฒ๐น๐น ๐ฎ๐ ๐๐๐ฐ๐๐ถ๐ผ๐ป
Contrast that with one of my mentees in the same auction, but using completely different tactics:
โข Freehold 3-bed, 1,000 sq ft, good condition.
โข Purchase price: ยฃ70,000, ๐๐ถ๐๐ต ๐ถ๐ป-๐ฏ๐๐ถ๐น๐ ๐ฒ๐พ๐๐ถ๐๐ ๐ณ๐ฟ๐ผ๐บ ๐๐ฎ๐ ๐ญ
โข A few issues we can resolve without extra spending, plus it qualifies for a grant.
๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฟ๐ฒ๐ป๐ ยฃ๐ต,๐ฑ๐ฐ๐ฌ ๐ฝ๐ฎ (๐ฒ๐ ๐ฎ๐ฐ๐๐น๐ ๐๐ต๐ฒ ๐๐ฎ๐บ๐ฒ ๐ฎ๐ ๐๐ต๐ฒ ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐ฐ๐ผ๐๐๐ถ๐ป๐ด ยฃ๐ญ๐ญ๐ฑ,๐ฌ๐ฌ๐ฌ ๐ผ๐ฟ ๐ฒ๐ฐ% ๐บ๐ผ๐ฟ๐ฒ!)
Thatโs smart auction buying: ๐ถ๐ด๐ป๐ผ๐ฟ๐ฒ ๐๐ต๐ฒ ๐ณ๐ฟ๐ฒ๐ป๐๐, ๐๐ผ๐น๐๐ฒ ๐ฝ๐ฟ๐ผ๐ฏ๐น๐ฒ๐บ๐, ๐ฎ๐ป๐ฑ ๐ฏ๐๐ ๐๐ฎ๐น๐๐ฒ.
๐ฅ๐ฒ๐บ๐ฒ๐บ๐ฏ๐ฒ๐ฟ ๐ช๐ต๐ผ ๐๐ต๐ฒ ๐๐๐ฐ๐๐ถ๐ผ๐ป ๐๐ผ๐๐๐ฒ ๐ช๐ผ๐ฟ๐ธ๐ ๐๐ผ๐ฟ
Auction houses represent sellers. If you can purchase the same stock 33% cheaper via an estate agent, why are you bidding at auction? Auctions make sense only when the pricing is wholesale. If it isnโt, youโre paying retail, and some!
It's all about knowing what you're doing. Auctions are not for amateurs.
Enjoy your weekend
