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Hi All,

New to this forum and starting out my property investing journey - Interested in professional B2Ls in Birmingham going with a BRRR strategy as well as looking at small ground up developments in London and SE for bespoke (think standalone garages, small plots of land with planning potential which I flip at auction once planning granted or develop myself). Keen to experience an auction so will get myself down to one after lockdown!

Quick question about those who have purchased properties at auction - I note the benefit of having a survey done however the cost being potentially prohibitive to 1st time investors.

Do you think there is scope for a service where auction bidders could share the cost of a building survey? Surely it would help with price discovery and also lower the barriers to investing at auction.

Interested to know the forum's thoughts.

Thanks

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Coincidentally a friend and I were having this exact conversation the other day. My thoughts / opinions were:

  • I don't think auction houses will allow it - viewings are normally 15-20 min slots. Secondly, they would be facilitating a report which would expose all the issues with the building, which can only have a downward effect on bids?
  • As a bidder, I don't particularly like the idea. The unknown is where the opportunity for arbitration arises - if it's all laid out in a report, I think everyone would come up with the same numbers, and only those willing to take a smaller margin would bid. I.e. those working with volume. The more experienced developers would lose their edge, and that would be worth more than the £500-£1,000 for a report. 

Life's more fun with un-diagnosed cases of subsidence, isn't it? 

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