Two auctions have completed already this week, one Strettons on Monday 5th and today Barnard Marcus completed. Both auctions achieved between 70-80% successfully sold lots. I highlighted two properties that I was interested in tracking for research purposes to gage whether lots at auction are selling above, below or around market value. (See 1 bed flat £70,000 and 2 bed flat £129,000). Both properties sold.
In the Strettons sale, lot 60, 68 Durban Road, West Norwood, SE27 sold for £157,500. I did not manage to view this property so can’t report on what condition it was in internally or externally. However if the buyer does not have much in the way of renovation to do on the property, I believe at resale they will be able to achieve a sale price of between £180-195,000, realising a profit of between £22,500 – £37,500 (minus expenses, fees etc).
In the Barnard Marcus sale, the lot 3, 2E Longton Ave Sydenham, London SE26, sold for £100,000. I did view this property and it was a well proportioned 1 bedroom flat in a detached building with private parking and a large garden. To the rear of the property is a park and it is situated in a road situated close to public amenities with good rail and bus routes within a short walking distance.
I had two concerns with the property. The first was an almighty crack running halfway down the front elevation of the property. It had been cemented over and there was no signs of damage to the internals of the flat itself, however a comprehensive building survey would have been required before buying as a pre-caution in order to know that any movement had been dealt with. I do know that some properties in this area, particularly ones in roads with well established trees, suffered in the dry summers we have had over the past three years, causing drying out and cracking in propoerty elevations and foundations.
All that said, the internal decor of the flat was in good order, perhaps replacement or modernising the kitchen and some cosmetic decoration was all that was required to bring it up to rentable standards. It is my opinion that resale of this property could achieve a price of around £150-£175,000 representing a profit of between £50-75,000 (minus fees, and expenses)