The third and final part of our series on the Essential Information Group where we look at how to use the fantastic Essential Information tool to find the best property deals at auction. Today we are going to focus on unsold lots that suit our criteria, that have previously failed to sell.
Using The EIG to Find Properties at Auction
Part 1: Using EI Group to Discover the Best Properties at Auction
Part 3: Country Wide Property Auctions and What to Look For
Countrywide Property Auctions
Welcome to our training video today on countrywide property auctions, what to look for and ultimately how to complete the third filter in this mini-series.
This is video three of three that we filmed on how to find the best property deals in auctions across the UK, countywide. We’re going to be focusing specifically on unsold lots.
So, this again is using the Essential Information Group service. If you wanted a free trial to this service we have a link around this video that you can click on that’ll give you access to it, to a free trial to set up and this is effectively a tool that we use within our business to spot great auction opportunities.
If you’ve not seen already the first two videos that go into this set, I’d recommend watching those in order.
It just gives you the first video, an idea as to the basic criteria that we use when we’re searching using the Essential Information Group. The second video is focused on repossession sales and the third video, which we’re going to do today, is going to be focussed on unsold lots.
So, if we click onto My EIG. The section here, again. What I’m going to be doing is setting up another detailed search and this is, ultimately, as we’ve said, focusing on unsold auction lots.
So, ultimately, we want to be looking at the same area and criteria that we set previously.
So, if we set to filter by radius, M21 again, that’s a postcode area of Manchester. Add a 15-mile range. Again you can set any filter set for the location that you wish.
Primarily we’re looking at all residential properties. That’s freehold and leasehold, tenanted and vacant and all types of houses.
You can click Land, Ground Rent, things like that, if you wanted to but just for our own search criteria, we tend to keep all of these open so we can just see the range of opportunities that are coming up.
We’re going to leave repossession and new builds off at the moment.
All lots, we’re going to be focusing on properties that have gone to auction in the future, or going to auction, sorry, in the future and ones that have sold, previously. All auctioneers, any price range.
Unsold Lots
Now, specifically, this is where we are going to be adding in this, kind of, additional filter set, which is here, the Sales Status.
So, we are wanting to look at, for this particular set, any recent properties that went to auction but failed to sell.
Were going click here, Only Unsold lots. Now, the reason for that is because if a property has gone to auction and failed to sell, there’s a good chance that that seller might be more motivated to do a deal.
That might be reducing the price. That might a change in terms if there are some slightly onerous terms in the sale. That’s less likely, it’s typically price orientated, depending on the vendor’s reason for sale.
And they may even be more amenable to sale speed and timeframes if for any reason you are not able to complete on the particular details that are set out in the original auction listings.
Again, that’s less likely. It’s typically guided by price but the motivation, ultimately, is going to be there to sell because it’s failed to sell, initially, the first time around.
Now, you do have that opportunity here with only withdrawn lots as well. You can click that and get that, kind of, added to the list.
You’re less likely to get lots of opportunities though if you are just focusing on only withdrawn lots and our primary focus here is only unsold lots.
But you do have that filter set so it’s good to play around, find the use-case that’s best suited for you and your search criteria.
Everything else we’re going to keep the same. You can save this search as well, so we can put it in here. Listings. So we’ve got an easy way of coming back to this particular search criteria, later on, when we are using it.
Now what this should do is hopefully bring us up all of the results that are within our area that are unsold listings. Now as you can see here we got lots of listings that have, kind of, shown up, lots of auctioneers.
Primarily it’s because we’ve chosen all search data from previous listings.
It’s going to give us a lot of information so what I do here is modify the search and just change data sets.
So, the location’s fine. Tenure. Residential. That’s all fine.
What we want to be amending here is a specific date range. So here we can go back to say 2017 and maybe look over the last, I’d probably say, three months or maybe even two months. Let’s go back to 11. So, even more recent.
So, a couple of months ago and that should hopefully tighten up the search criteria that we’re looking for.
So, you can see here now, that’s brought it up to 56 results.
This is really good because it gives us a list of all of the properties that have gone to auction recently that have failed to sell.
Now, some of these properties might be going back into auction. Others might just be listed by the original agent and available to place a bid.
Now, if that date has been updated at any point in time, so you can see where this particular one at the top, last bid was £130,000, it’s available for £135,000.
It will all automatically get added to the listings here. Likewise, if a property has since sold, it should automatically get added the listings here, you see?
So, you should get the latest snapshot as to what that detail is.
Now, this is only as updated and relevant as the auctioneer has updated this information on their site as well, and their listings.
So, it’s always worth contacting the auction, if this is a property that you’re really interested in, as well, just to see its latest status, to see if it is available.
But what we would then do is, once we’ve got this search criterion dialled in, we know these are all the listings of unsold properties going to auction. Sorry, unsold lots, countrywide, that have failed to sell at auction, that are suiting our criteria.
Certainly could do countrywide, lots of investors that we know, do look across the whole country for their property auctions.
We’re specifically looking in the northwest this with this criteria, so, we’ve located it around our geographical region but you can also then start to add these to a particular shortlist and start to create an additional list of properties that really fit your criteria.
So, I’m primarily looking at location, primarily looking at the listing, the visual of it, to see what looks like to see if it’s property that would fit. And our description here. What we’re ideally aiming for.
And then it’s as simple as that, going down the list and adding the properties to your original shortlist.
Now, you can remove them from your shortlist later on. If it’s a property that doesn’t fit.
This particular property here, visually doesn’t look great and we know the area quite well and that’s quite a high price for that property, it’s certainly a high price for the yield that we’d want to achieve on that property.
So, that’s probably not a property that we would list and add to our criteria but these ones would be.
What this allows us to do is build up another shortlist, really, of properties within a particular criterion. So, on video one and two we’ve built up a shortlist of property opportunities that we felt were good.
This is really the third chance of creating an additional shortlist.
Now, once we have all of those we can then start to progress to viewings and start to progress to looking at the legal packs for the properties.
I’m just going to pause the video here and just go through all the properties that we think are suitable for our shortlist.
Okay, so that’s just to save you a bit of time. I’ve just highlighted all of the properties and added them to the shortlist, here.
So, as you can see here, this one is unticked because it’s not suitable, really, for the types of deals that we’re looking at, currently. But this one does look good. So, we’ve added that to the shortlist.
Same again, we click on our shortlist section here in the top right-hand corner. That will bring us to our initial shortlist page. We can then go through each individual listing, look at some of the data set so we can see, okay, well, what’s the search history? What’s sold, sorry, on that street? What’s sold, locally, for that area? And see if that property is one that’s going to be a good fit for us and then either keep it in a short list or remove it.
Once we’ve done that, we can then convert it into a portfolio, same again here and add it to our listing. So this one will be ‘Manchester Unsold Lots’. Click on ‘Save’.
Now, if we go to our portfolio criteria list here, what we now have is three different searches that we’ve done over this mini-series of videos.
The first one here was focused on just general properties that fit our criteria. So they were in the location and the price range and the style of properties that fit what we’re looking for and their auctions they’re coming up in future.
The second one here was repossessions. So, properties that specifically are repossessions that come into future auctions.
And then the third is properties that have failed to sell at auction.
This, combined, gives us a total of just under 50 properties, just over 50 properties, actually, that are potential opportunities that have gone to auction recently and we wouldn’t have really had this, access to this, shortlist, in the same way that we can create it, if we didn’t use the Essential Information Group tool.
Conclusion
So, it’s a great way of really, if auctions are your focus, if your criteria are to look at properties that are potentially going to auctions, in your local area or countrywide or you’re looking for rundown properties or repossessions.
Whatever it might be, if auctions are your criteria then we’d certainly say, kind of, check out this tool.
There’ll be a link around this video to give you free access to the site, gives you a bit of a way to have a play around and see if it’s a good fit for you.
The EIG also have an on-boarding process. They can show you one-on-one how to use the tool, that’s going to be best for your use-case.
Hopefully, that helps so any questions don’t hesitate to ask and I look forward to catching up with you on future videos.
All the best, take care.
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