The way residential property is sold has changed over the last five years, with online agency, hybrid agency, hubs and even sell-by–owner. However, it is probably the auction process that has been modernised more than any other route to sale.
Now a new buying tactic has been reported by Network Auctions. The results of its sale on 6th June show that buyers are buying before auction. Of the auction lots offered in their latest sale, 52% sold prior to auction.
“Buyers are keen to make good property purchases and we see this increasing, with strong offers being made before auction. The uncertainty surrounding Brexit has lifted a little and we’ve been much busier in terms of viewings and response – and that converted to positive sales,” says Toby Limbrick, Director, Network Auctions.
“Sellers are also more responsive to pre-auction offers – especially when they are above reserve and show the buyer understands the market. Auctions create a momentum to the sales process which is lacking in private treaty, plus you have the certainty of sale – something which every buyer and seller wants more and more.”
Sales online, pre sale and ‘in the room’
The ballroom sale still attracted keen bidding in the room with highlights including a two-bedroom cottage in Bedfordshire selling for £164,000 (guide of £110,000+), a residential investment of six flats in Wembley selling for £725,000, and a two-bedroom maisonette in Aylesbury achieving 30% more than guide selling at £123,000 against a guide of £95,000.
Toby added, “Today we sold a property which had been on the market and had a sale progressing at £139,000. The buyer was procrastinating and so the seller decided to enter it to auction to get closure. We guided it at £110,000+ and after 50 viewings and 29 legal packs downloaded, we sold it for £164,000 after a bidding war including the previous buyer. That’s the result of auction – auction forces people into action.’
Network Auctions raised a total of £8,616,500 and achieved a 78% sales success rate.