No longer just a domain for investors, developers, and property dealers, the auction room is now the preferred option of buying and selling property for a wide range of people, including buy-to-let landlords, seeking a fast and secure method of sale.
With no chain, a fixed timescale, and a reservation fee at the fall of the gavel, the process brings greater confidence for all parties and promotes smoother transactions, without fear of the deal falling through at the eleventh hour.
With more buyers armed with funds in place, competition among bidders is growing, driving up sale prices, with many lots selling for well in excess of their guide prices,
Auction House founding director Roger Lake said: “Firstly, it’s the simple fact that there has been a huge upsurge in buyers looking to purchase property this way. The competitive bidding nature of auction is enhanced still further by this larger cohort of buyers – which means that auction lots are achieving even higher prices.
“Secondly, we seem to be attracting more properties from higher price brackets to offer for sale. We have opened the door to a group of sellers who wouldn’t previously have considered auction rooms; we are listing those higher-ticket properties and are hammering them down successfully.”
Property auctions proved particularly popular during the recent lockdown.
According to Auction House, the average price of its properties sold during lockdown rocketed by more than a third.
The figure has jumped from £116,145 in July 2019 to £159,359 in the same month this year – an increase of 37%.
Lake added: “The auction process is just as effective and successful as it has been in the past; in fact, the market is rebounding towards its pre-pandemic levels. For example, one of our auctioneers with 28 lots in his catalogue this month has carried out 650 viewings and dealt with over 1,250 registrations for legal packs.
“Admittedly, selling by auction has changed during Covid. With gatherings prevented, the switch to remote bidding and growth in demand has been a big transformation and a huge success.
“Auctions were ballroom events with big audiences and we have no doubt that in the future they will be again. But for now – and until the pandemic is over – auction sellers and buyers will be brought together by highly-effective technology-supported solutions. And our latest results show they are working exceptionally well.”