So we didn’t win at the last auction. But we did learn a lot.
In the lead-up we felt pretty confident about our preparation. We’d done our research on the property, we’d calculated what it would cost us to renovate, we’d considered what our max bidding price would be and we’d even got all the plans from council. We viewed the estimated value prices online, and thought that they probably didn’t take into consideration the condition of the house, and therefore they were over valuing the property. We were wrong.
The house sold for pretty much the exact price it was valued at. Our first reaction was, woah we didn’t expect it to go for so much. But we felt ok since it went for about $75k more then what we thought was a good price for the property. And it needed A LOT of work. A few hours after the auction I started feeling a deep sense of regret. In reflection the valuation price, was still a good price. We could have afforded it, we probably wouldn’t have been over capitalising and it ticked all the boxes of what we wanted.
It took me nearly 2 weeks to get over missing out on the property. It feels silly to think about it now, but at the time I actually felt sick to my stomach with regret. But time heals all wounds, and I’ve gotten over it, and now we’ve found something which could potentially be even better.
Unfortunately it’s another auction. It’s in a great location, so we’re expecting a lot of interest on auction day.
With this house it’s a lot more expensive than the one’s we were previously looking at, but it also needs a lot less work. It’s not our dream house right now, but it could be. And it’s in a perfect location for us. It has good bones, despite a poor internal layout, and the main areas that need work are the bathrooms and kitchens, which are the main things I want to renovate at the moment anyway.
And best of all we don’t need to replace all the walls like the last house 🙂
This time we’re prepared to spend above market value, because we know we could make it great without having to spend a lot of money, and we can see ourselves staying there for a long time. Despite this I’m still feeling much less optimistic about our chances of winning it. There has been a lot of interest in this property as well, and I won’t be suprised if someone bids way over estimated value and we miss out.
Our max bid is basically our entire borrowing capacity, so there isn’t much we can do to prepare more for it. The real estate agent has high hopes for it (he’s even more optimistic about things than I am), so I feel like he wouldn’t accept our offer if we tried to buy it before auction. And who knows, maybe we’ll get lucky and pick it up for a price less then our max bid.
As much as I’m trying not to get attached to the house again this time, I can already imagine what it would be like living there and the things we would do to make it ours. I’ve made the decision to not go to any more inspections, cos the more time I spend there, the more attached I get.
Fingers crossed, next weeks blog will be an update saying we won it 😉