Recently a local agent brought an auction property to my attention. At first glance it looked like it could be an interesting opportunity. The guide price appeared considerably below what I believed the potential end value (GDV) might be, which of course immediately catches the attention of any developer. However, experience has taught me that when something appears particularly attractive on paper, it is always worth taking a careful look beneath the surface. The initial photographs suggested the property was in reasonable condition for a refurbishment project. As the agent was out conducting viewings, I sent a few follow-up questions by email and began reviewing the details more closely. As I dug deeper, several concerns started to appear. One of the rooms had a collapsed ceiling which had not been obvious from the marketing photographs. Whilst structural or cosmetic issues are usually manageable within a refurbishment budget, they are always worth noting early. The more significant concern came when further investigation revealed that the property had multiple charging orders and judgements registered against it. At that stage there was no clear confirmation that, if the property sold around the guide price, those debts would be fully cleared from the sale proceeds. Without certainty on that point, there was a risk that the financial position attached to the property could become complicated. Whilst I am always open to looking at different situations and opportunities, this particular property appeared to be carrying a number of potential issues. As a developer, it is important to protect the numbers and ensure there is clarity around title and liabilities before committing to a purchase. For the moment, the sensible decision was to step back and walk away. That said, I will be watching the auction closely over the coming week with interest. It will be fascinating to see what level of demand the property attracts and what price it ultimately achieves. Sometimes the most valuable decision a developer can make is knowing when not to proceed #whentowalkaway #duediligencematters #delvedeeper #auctionproperty

Posted by Donna bywaters at 2026-03-10 19:32:35 UTC