BUDDING buyers can buy a home for less than three quarters of the average UK house price if they head to an auction.
Prepare to swot up on Homes under the Hammer to bag a bargain, as we round up eight homes you can buy for £20,000 or under.
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It comes as Brits flocked to auction houses throughout the pandemic, with bids soaring by 700% during the Covid crisis.
As properties listed on auction sites are usually much cheaper than the going market value, bargain hunters looked to beat soaring house prices by placing their bets elsewhere.
Property prices rose at the highest rate since 2004 in June this year – the biggest jump in 18 years as the market boiled over with buyers locking horns for a home of their own.
Properties were also selling out within just days of being put up on the market – meaning Brits had to look for alternative ways of getting a home.
Before you decide to sign up to an auction, there are a number of things to be aware of.
Although properties on auction sites are usually cheaper than those listed on the traditional market, you’ll no doubt be paying more than the starting price.
This is because there will no doubt be other buyers vying for the same property as you – make sure you have a cut off point in mind if you get locked in a bidding war.
You should also factor in how much cash you’ll need to do up the house if you want to.
Before buying a house, especially one that needs work doing to it, you should pay to have a survey carried out.
These are on top of the survey your mortgage lender will carry out and prices depend on the level of detail you want.
For example, a condition report costs around £300 and will give you a summary of defects and possible risks.
A building survey is the most detailed report you can get and will cost you upwards of £500.
Here’s some of the cheapest auction deals on the market, according to Zoopla.
Two-bed house, Chesterfield: £15k
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This two-bed home in Chesterfield has a guide price of just £15,000 – but it needs a bit of doing up.
There are holes in the walls in some of the rooms, including the kitchen, and the bathroom could do with being stripped out.
However, it comes with a back garden, and there’s a reception room, kitchen diner, and a bathroom.
You’ll need to register to bid for the property by midday this Tuesday, October 19 and the auction starts the day after at 9am.
You’ll have to pay an administration fee of £1,440 if you’re the successful bidder.
Two-bed house, Staffordshire: £19k
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This two-bed house is being listed for £19,000 via auction – but bare in mind it could go for much more than that.
However, it’s a roomy house, with a bathroom and downstairs toilet, two reception rooms, a kitchen, garage and two gardens to the front and back.
It’s in need of “cosmetic improvement” according to Zoopla’s listing.
The kitchen and bathroom could do with modernising, and you might want to redecorate if you’re not a fan of wooden panelled walls.
The highest bidder will have to put down a 10% deposit for it immediately – so make sure you have £1,900 to hand.
The auction takes place on November 2 at midday and you can register for it on the under the hammer website.
Two-bed house, Staffordshire: £19k
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If you’re happy to take on a project, you might want to take a look at this two-bed house in Staffordshire.
It has a guide price of £19,000, and comes with a bathroom, reception room, kitchen and garden.
However, like the others on the list, it needs a bit of work – for example, it looks like the walls have been hit by damp.
Should you be the winning bidder, you’ll need enough cash to put down a 10% deposit for it which would be £1,900.
The auction starts on October 26 at midday, and you can register to bid on under the hammer’s website.
Two-bed house, West Midlands: £19k
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This red brick beauty in Tipton could be yours if you have at least £19,000 cash in the bank.
The auction starts on October 20 – this Wednesday – so you’d better register quick on Bond Wolfe’s website by tomorrow if you want to place a bid.
Should you beat your rivals, you’ll have to pay a £1,440 fee for the home.
It comes with a bathroom, reception room, kitchen and conservatory – there’s also a garden to enjoy when the weather gets nicer.
Three-bed house, Derbyshire: £19,000
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Looking to start a family? This £19,000 three-bed house in Derbyshire could be a forever home – but it needs a lot of work.
It looks like the kitchen has been ripped out – but there appears to be mould where the units used to be.
The bedrooms need modernising, while the bathroom doesn’t look in too bad shape.
It comes with a bathroom, kitchen and a reception room too.
The auction takes place on October 26 at midday – make sure you sign up on under the hammer‘s website at least 24 hours before then.
Three-bed house, Nottinghamshire: £19,000
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This bargain pad in Nottinghamshire is going for a guide price of £19,000 – and it comes with three bedrooms, a bathroom and two reception rooms.
It already looks like it’s undergoing work already in many rooms in the house, but it’s certainly far from finished.
Want to put in a bid? The auction takes place tomorrow at midday – register on the under the hammer website.
You’ll also have to fork out for an administration fee of £2,500 plus VAT, or 1.75% plus VAT of the purchase price of the house – whichever is greater.
Three-bed house, Wales: £19,000
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If you’re house hunting in Wales, you might want to see this three-bed house in Mid Glamorgan.
The auction starts tomorrow at midday, so make sure you register today to be in with a chance of bagging it.
It comes with a lounge, kitchen, three bedrooms, a bathroom, a toilet and a garden.
You’ll have to pay a fee of £975 if you’re the winning bidder.
Two-bed house, Workington: £20,000
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If you’re on the hunt for a two-bed and don’t mind getting your hands dirty, this property in Workington, Cumbria, could be a good choice.
The property includes a kitchen a bathroom and a reception room too.
It’s going for a guide price of £20,000 – and the auction takes place on October 27.
You’ll have to pay a fee of £1,000 plus VAT if you are the winning bidder.
Make sure to register online by October 27 on Taylor James Auctions website.
What are the pros and cons of buying a home through auction?
If you’re wondering if it’s worth putting a bid in, Which? has explained the pros and cons of getting on the ladder by bidding your way to success.
Pros
Homes listed on auctions are usually cheaper than what is listed on the market – so there’s an opportunity to bag a bargain.
Which? also says the process is completed within 28 days after the auction, so you can move in quickly.
Plus, if you win your home in an auction, contracts are signed immediately afterwards, so there’s no going back on it – meaning you don’t have to worry about your sale falling through.
Cons
Be warned, you could miss out on your dream home if someone outbids you and you can’t stretch your budget to meet it.
You’ll also usually have to pay a reservation fee if you’ve secured the home and won the bidding war – so you’ll have to factor this cost in.
Some homes being sold through auctions need a lot of work and could be in disrepair, so you’ll need the money to do it up too.
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