Back out from successful bid on auction property?Make Text Bigger
Hi Everyone, We are in a need of urgent advise. We secured a property in auction just last week and yes despite all the warnings we didn’t see the property and did little research.
Property we secured is a purpose built flat, and what we noticed is no flat has been sold in last 10 years since they were built. Today we called a agent to see how much we can put the property on sale for, and it was somewhat same price that we paid in auction. However, they already had 1 flat (same as us) which was put on market end of 2018 and it is not yet sold. Various reasons for it 1. Property needs lot of work. 2. They had offer accepted, but the bank down valued the property as there was nothing sold in past 10 years. We did not have this problem as we were a cash buyer. He also said that he knows there had been a or a couple of flats sold for which land registry may get updated in coming months and then it should help.
We also noticed there is one block of flats which is not finished since, but agent confirmed that property developer is now starting to build those flats. There is a new school which has been built just next to this block of flats which may give boost little bit to the property.
I have checked with the auction company and obviously they said can’t back out now. I have asked them if they can at least ask the audience if anyone is interested in the property as there were couple of bidders when we were bidding, but they were kind of reluctant and said they will speak to the manager and come back. My point was whats the point of completing the property after paying stamp duty, and other costs and then ask the potential bidders, but again I am not sure if they will accept it.
We are now in panic state, could anyone here be kind enough to give us the advice on what can we do.
Some of the options we thought off:
1. Put up on Rent and in couple of years put up for sale.
2. Can we back off from the auction purchase now (no deposit has been deducted yet), even if that means we need to loose our deposit ?
3. or put the property back in auction after completing.
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