Auction houses still offer bargains for home buyers

Published 28th Jun 2007

Private home buyers across the UK are being encouraged to look towards auction houses for bargain properties, fuelling their growing popularity

David Sanderman, founder and managing director of the property auction information business Essential Information Group, said he believed it was still possible to hunt out a bargain at auction.

He said: "The definition of a bargain is a very subjective argument. For example, you see a property that has a guide price of £100,000, you are happy to go to £110,000; I have seen the property, but I don't think it is worth more than £100,000 – so at that price I pull out.

"If you carry on bidding and you are the successful purchaser at £105,000 – you have a bargain."

He suggested that by such a definition people set themselves a limit, which if they don't exceed, they've got a bargain price.

Sanderman insisted that nobody was 'forced to stick their hand in the air', but admitted that people were naive, suggesting that some buyers thought it was a bargain simply because it was up for auction.

"The perception of property always being cheaper because it is on a property auction site is wrong. You must only pay what you think it is worth, not what the market or some other fool thinks it is worth!"

Source: ' What Mortgage '

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