A three-bedroom property is up for sale at the bargain price of £10,000.
The semi-detached property in Northfield, Birmingham, boasts plenty of space, as well as a large wrap-around garden. It stands in Fairway, close to the A38, just seven miles from the city centre and two miles from the picturesque Lickey Hills Country Park and golf course.
However, if it sounds too good to be true, it is – the house is severely affected by mould and buyers are currently not allowed inside for viewings.
Images show the property covered in mould, broken furniture, dirty curtains and rotting rubbish. The wallpaper in the kitchen is peeling and stained and the ceiling appears to have partially caved in. Old black-and-white photographs hang on the walls, with piles of dirty clothes left on the bannister and chairs.
The dire state of the corner-plot property means it is unsafe for people to enter for a viewing. But despite the dismal condition of the house, it could be a bargain compared to nearby properties which sell for more than £300,000. The house has a hallway, lounge diner and kitchen on the ground floor with three bedrooms, a bathroom and an attic upstairs.
Under the hammer
The house will go under the hammer on 8 February. It is being sold by Bond Wolfe Commercial Auctions with a starting price of £10,000.
The estate agent’s blurb states: “The auctioneers were unable to inspect the property internally and therefore the accommodation details should not be relied upon. There is extensive mould present in this property and due to the condition there will be no internal access prior to the auction sale.”
On a more upbeat note, the description goes on to say: “The property has the benefits of gas fired central heating and double glazing, however it is in need of full renovation works.”
The derelict house has a big garden which is overgrown and has ten years left on a 99-year lease.
Is it worth buying a house at auction?
The pros
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The process tends to be faster than using an estate agent
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If you’ve placed the winning bid and the property has been declared “sold”, the seller can’t drop out.
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You can ‘luck out’ and grab a bargain for lower than its market value, particularly if the property is being sold by a bank after being repossessed
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It’s a good opportunity to add value. Many properties at auction require significant renovation which Is a good opportunity to get a project and then sell it on at a profit
The cons
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There is an initial non-refundable cost to be paid as soon as the auction as ended – normally 10%. You then only have around four weeks to pay the rest of the balance
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There’s always a temptation to stretch your budget during a high velocity bidding process
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If you’ve got your heart set on a specific property, the final sale price could be much higher than you had budgeted for
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It’s always safest to get a property surveyed before an auction to ensure there are no nasty surprises further down the line. The downside of this is that you end up spending money on a property that you subsequently get outbid for
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If you aren’t a cash buyer and are borrowing money from the bank, there is still a chance your lender will not lend you the money if any legal or structural issues materialise with the property. That means you may not be able to complete the sale
