15 Dec Auction Flip
Buying properties and selling them on through auction without doing any work on them can be a great strategy in a rising market. Whilst everyone runs down the the local auction house “to bag themselves a deal”
The lower you can make your guide price the more attractive you make the proposition to the punters out there…..its the honey pot effect for the night. The more people in the room keen on your property the more likely your property is going to go for much more than the guide price. You may even make yourself more money than if you had done the works yourself as people get themselves into a bidding war!! As long as you bought it for the right price there should be enough meat left on the bone for all parties.
The downside of setting your guide price low is that you must legally set your reserve price within 10% of this figure….this means that you can run the risk of the property going for cheap….meaning you may break even but thats the name of the game with this strategy.
If the property doesn’t sell on the night you can do the works and sell it on or let it out yourself.
Here is our next auction flip – (if it doesn’t sell before)
How is this strategy working for you ?