Company details

Web: www.eigpropertyauctions.co.uk

Telephone number: 01737 226150

Email: info@eigroup.co.uk

Checklists: Buying at auction

Kate met David Sandeman at the property investor shows and they have always got on well. The service that EI Group provide is not just a way of finding a potential bargain, but a really good research tool in its own right. It helps an investor understand how much properties are being advertised for, and how much they are then sold for. It also lets you know when a lot has gone to auction but not sold, offering a possible investment opportunity.

What do they do

EI Group provide the only portal to carry sold prices of auction lots and this is valuable knowledge when trying to ascertain what a future lot might sell for.  The Land Registry won’t help as it does not identify auction sales and, in any event, does not record a large percentage of auction sales.

Secondly, they are the only portal to list all auction lots coming for sale and so will give you complete coverage of the auction market.  Unlike estate agents who generally only offer properties located within a few miles of their office or branch, auctioneers offer property over a much wider area.  It would not be unusual for a small regional auctioneer to have stock over 40 miles from the office and some auctioneers, especially the major ones, offer lots from all over the UK.

This means if you are looking in a specific area, only EIG can give you the full picture and if you just look at auctioneers in your area, you will miss out on many potential bargains being offered by auctioneers that either are not in based in your local area or who do not advertise all their stock on the portals.

From the beginning

EIG was formed in 1990 to monitor and report on all activity within the property auction market.  The website has full information on more than 800,000 past auction results.  This includes the address, detailed subscription, pictures, guide prices for future lots, and prices for sold lots.

The site is fully searchable so a user can specify a search similar to the major portals based on property type, location and price, for both future and past lots.

How much does it cost?

Full site membership costs £525 + VAT per year, or £295 + VAT for 6 months.

Do mention Propertychecklists.co.uk if you would like a free trial of their database and a personalised consultation with one of their experts as to what is available, and what has sold in your area. Call 01737 226150.

Top three tips

1. It is very important to understand that the ‘Guide Price’ which you will see quoted is not necessarily what the auctioneer expects to sell the property for or a valuation, but merely an indication as to where the reserve (the minimum price the auctioneer can sell it on the day) is set.  Do not assume that if you offer or bid the guide price you will end up buying the property.  Auctioneers try to get the reserve and guide price as low as possible to generate more interest in the lot that will in turn drive up the price.  To get an indication as to what it might sell for you need to see what similar properties have sold for at auction and EI Group’s historic database will assist you with this task.
2. Look for properties being offered by an auctioneer who is based far away from the property. It may attract less interest than properties close to them, hence fewer people bidding against you and hopefully a lower price.
3. Set an upper limit and stick to it. It is very easy to get carried away and end up paying far too much for the property. Just because someone else is bidding against you does not mean it is worth it!