Council waste means you can find a bargain

Local authorities are wasting your money because they aren't properly marketing the properties they no longer need.

Many boroughs own quite a bit of property. Some of it is commercial and much of it residential. Some they lease out, some stands vacant, some they sell through "right to buy" and then there is a last chunk.

With work and effort it could be sold on the open market. All too often however, it's simply thrown into an auction.

Auctions are a good way of realising cash quickly but at a cost. Some experts estimate that auction properties go for 20 per cent below their true market value.

Most people won't buy a home in an auction. They feel uncomfortable so chances are the highest bidders are excluded from the process. Those who are left want an immediate profit.

If you want to sell your home, you go to an estate agent. Chances are you will get the best price as the property is exposed to the widest possible market. Granted, it takes longer to sell a property through an estate agent.

My advice to our councils? Think about how much money you are wasting. My advice to you? Scour the auction catalogues. With the market showing signs of recovery, you could pick up a bargain.

James Max is a surveyor and former banker. He presents Business and Property on LBC 97.3FM.