Auction market prospers whilst estate agent sales are down
The Land Registry has reported that residential house sales fell by 21% in 2017 compared to the previous year.
Roger Lake, the founding director of property auctioneers, Auction House claims that most of the decrease is due to fewer sales by estate agents. Auction House sold
5% more residential properties compared to last year. He believes that property auctions are becoming more mainstream. He explained the advantages of sellers using property auctions:
“Auction is a much faster way to sell, success rates are far higher, and when the hammer falls contracts have exchanged, and the sale is certain.
“What’s more, for the right property, auction will often deliver a better price through competitive bidding from several interested buyers.”
Lake concluded that:
“Selling by auction really does make sense. That’s why it is growing in popularity, becoming more mainstream and delivering a speedy result for an increasing number of sellers.”
Property needing refurbishment is especially suitable for auctions. There are developers and landlords wanting to purchase property for refurbishment. Because of their condition, many of these properties are not eligible for mortgages, but bridging finance can be used to finance refurbishment work.
Mixed-use properties that have commercial and residential uses are often sold at auction. Many buy to let landlords are looking into mixed use or semi-commercial property to diversify their property portfolios.
Auction buyers are required to pay the full purchase price of the property within 28 days. Bridging loans are available to complete purchases on time.