Buyers are back in the room – but with a different buying tactic according to the latest data and analysis from Network Auctions.
Buying before auction seems to be the latest trend spotted in auction rooms across the UK. Of the auction lots offered under the hammer at Network Auction's latest sale, 52% sold prior to auction.
Toby Limbrick, Director, said “Buyers are keen to make good property purchases and we are seeing this increasingly 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 has converted to positive sales. Sellers are also more responsive to before 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.”
The ballroom sale still attracted keen bidding in the room with highlights including a two-bedroom cottage in Bedfordshire in need of repair selling for £164,000 against a 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 said: “Auction gets properties sold, 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.