Someone once quipped that an auction is “where the gremlins come out” because capital investment can quickly be lost if one bids for (and wins) a property with major issues that were not apparent at the time of purchase! We’d heard different horror stories so stayed away from any auction purchases for a while until we had gained sufficient experience, became educated on the required due diligence for auction purchase, and learnt the code of conduct in the auction room! 

All the learnings gave us sufficient confidence to pursue an opportunity we spotted in our local investment area that was being marketed by an auction house from out of town. We carried out the necessary due diligence, assessed the potential risks, built in sufficient contingency and after satisfying ourselves the numbers worked, traveled to the auction venue with a good mix of excitement and trepidation (in equal measure). After the initial flurry of bidding, it was down to two of us – we were in competition with a telephone bidder and as the gavel went down, we had the winning bid and eventually clinched our first auction property! 

After the initial 10% deposit and fees, the solicitor drew our attention to the completion timeline – 2 weeks instead of the standard 4 weeks! We had to scramble to arrange funding with our bridging company and completed the purchase, just a few weeks before COVID-19 struck and the first lockdown in the UK introduced on March 23rd 2020.

It was one of those properties where you had to hold your nose as you enter because it was filthy, soiled and caked with dirt and nicotine stains – ceilings, floors walls, windows and woodwork! In fact one of the decorators we engaged earlier had to abandon the job because the stench and stinking smell made them physically sick!

There was no cosmetic make over on this one. It had to be gutted completely and given a new lease of life. We took on the challenge and created a fresh, modern, quality home from what was once derelict and neglected, adding significant value in the process. The project took slightly longer than the usual 4-6weeks turn around time but we completed the transformation and turned it into a high quality and modern home for another family.