Buying a place with obvious problems, whether at auction or through a private sale sounds a bit mad on the surface. Why willingly take on someone else’s headache? But funny thing is, it can actually be one of the savviest moves you’ll ever make. These properties are cheaper precisely because of their flaws, and if you’re smart about it, you can turn them into either a tidy profit or a home you’d never have been able to afford otherwise. Sure, it’s going to take some graft, but that’s part of the deal. The trick is knowing what to look out for—and being ready to tackle whatever it throws at you.
Dodgy Electrics
A lot of auction properties have ancient electrics. We’re talking breaker boxes that belong in a museum and wiring that looks like it was done by someone who gave up halfway through. Even if everything technically works, it’s probably miles behind current safety standards.
If you’re serious about bidding, get an electrical inspection done or at least factor in the cost of a full rewire. In the US, rewiring a three-bedroom house will typically cost anywhere from $8,000 to $15,000, depending on the size, age, and accessibility of the property. If the house has plaster walls or limited crawl space, expect the price to be on the higher end due to the added labour and repair work.
Cracks and Creaks
Old houses creak, that’s just part of their charm. But if you’re noticing ‘stepped’ cracks in the brickwork, it could indicate structural movement. Subsidence is the big concern here and for good reason—it’s expensive to fix. Underpinning a house can easily cost $15k or more. Larger, horizontal cracks, or those near windows and doors could also point to foundation issues. This kind of movement can cause uneven floors or doors that don’t close properly, and while the repairs aren’t cheap, catching them early can save you a lot of headaches down the road. A lot of older homes show some superficial movement that’s harmless, but you’ll want to get a full structural survey to be sure. Also, check if the property is still insurable. Homes with a history of movement can be tough to insure, and if that’s the case, securing a mortgage later could be a real challenge. If you suspect foundation problems, it’s best to bring in a professional, places like rsfoundations.com can assess the damage and help guide you in the right direction.
Asbestos
If the property was built before the 1980s, there’s a good chance you’ll find asbestos lurking somewhere. Ceiling tiles, insulation, even the old adhesive used under floor tiles—it was everywhere. Most of the time, it’s not dangerous unless you disturb it. But once you start drilling or knocking down walls? That’s when it becomes a problem. Now, asbestos removal is no DIY job. It needs professionals. Costs vary massively, sometimes you’ll pay a few hundred quid for a small job, other times you’ll be shelling out thousands. The good news is that you don’t always need to remove it. In many cases you can just seal it off, which is cheaper and perfectly safe.
Legal Snags
Auction properties come with more legal baggage than you might expect. Some have boundary disputes, others have missing building permits or lingering debts attached. And if you think “how bad could it be?” well, you’d be surprised. Always get the legal pack checked by a solicitor before you even think about bidding. Some properties have overage clauses, which means you’ll have to pay the previous owner if you increase its value (like by adding an extension). Sounds crazy, right? But it happens. And that kind of clause can seriously mess with your profits if you’re planning to flip. Also, check the property title details if it’s a flat. Some auction properties have dwindling leases that are nearly impossible to remortgage, making them harder to sell on later. It’s the kind of stuff you only learn the hard way- unless you get someone sharp to comb through the details beforehand.
Drains and Sewer Issues
The thing with drains is that you don’t think about them until they’re blocked or backing up. And by then, you’re already in trouble. Auction properties (especially older ones) sometimes come with cracked pipes or blocked drains you won’t spot until it’s too late. Get a sewer line inspection done before you bid. The survey uses a camera to check for hidden problems like tree roots, collapsed sections, all that fun stuff. Because finding out the hard way is a lot worse.
