We can’t deny that a number of properties sold at auction present an unusual proposition. And it’s true that cash buyers, investors and developers are frequent bidders, as they’re willing to take on a project or ‘doer-upper’ but there is plenty of room at auctions for ‘normal’ properties too.
So, what is the difference between a normal and unusual property? In the auction room, you will see properties that are derelict, suffer from subsidence, have been repossessed by a bank, are sold with tenants or are of a non-standard construction – homes that usually require a hefty dose of TLC, specialist knowledge or investment.
Quick sale agency Open Online would consider a normal property to be one where the owner is able to live at the property in comfort; where major renovation work is not needed and where there is no threat of eviction or repossession. A property is still considered normal even if it needs redecoration or a little modernization. It’s worth knowing that Open Online also represents normal properties where the lease is running out, as we understand these homes usually fail to generate much interest when marketed by a traditional estate agent.
Auctions offer certainty, which simply can’t be found when selling on the open market using a High Street estate agent. When you sell at an auction, exchange takes place as soon as the gavel falls and there’s no time for gazundering.
Many owners of standard, normal properties need to sell property fast and despite their home being in good condition, they choose the auction route as they simply can’t wait weeks for the marketing, offers and conveyancing stages to complete. As an illustration, Open Online frequently auctions probate properties where a quick conclusion is needed to tie up an estate and personal affairs – we find many probate properties are cherished family homes that are quite the opposite of a wreck.
A recent survey by Viewber found that almost half of respondents (46.7%) thought property auctions were reserved exclusively for property developers and investors but this is simply not true. Owner occupiers looking to buy a home to live in are frequent bidders in Open Online’s auctions, and these buyers often want good-quality properties that are ready to move into quickly.
As many purchasers have recently had their fingers burnt and experienced collapsed chains, they’re increasingly turning to property auctions for security. Auction sales are not restricted to cash buyers either, as many property lots are available to purchase using a mortgage, as we discuss in this blog.
It’s a myth that every property sold at auction sells for a discount because it’s run down or needs a cash injection. It can actually be the opposite, especially if there are multiple bidders eyeing up a home in a good condition. The starting point for every property lot is a reserve, which protects the seller from their home being sold too cheaply. If your home is in a good state of repair and in a desirable area, there is no reason why the reserve won’t be met – or even surpassed.
Open Online is an express sale agency, selling as many good condition properties as we do examples that need work. As well as property auctions, we operate as an online estate agency, advertising on the leading property portals, displaying properties for sale on our own website and notifying our waiting list of ‘hot’ property buyers.
We’re happy to answer any questions you have about selling a property you own at auction but you might find the response you’re looking for in our online FAQ section. Don’t see your question listed? Get in touch for friendly advice and help.