Properties by auction
To help you to decide whether property auctions may be the right route for you, we have provided below an overview of the types of properties that tend to be more appropriate for the auction process. If you’re still unsure about it and need some advice, then simply give us a ring on 0845 053 6906 or fill in our no obligation, free property valuation form and one of our auctioneer partners will be happy to discuss your requirements.
Many properties sell very well through auction, often achieving a fantastic sale price. The bottom line is either the property has to have an angle where buyers can add value i.e. lots of land to the side, unmodernised, etc or it has to be cheap enough for buyers to think that they’re getting a great bargain.
If you have a property that falls into any of the following criteria, auction may be the best route to a successful sale.
- Property in need of modernisation, renovation, refurbishment or redevelopment
- Repossesions and Probate
- Any property that has been on the open market for a long time can achieve its true value at auction
- Building plots or Development Sites
- Mixed Use, Residential, Commercial investment property including tenanted houses and flats
- Unconventional or unique properties for which market value is difficult to assess
- Agricultural Land and Buildings
- Freehold Ground Rents
Why should you sell your property at auction?
Before putting your property into auction, it's worth asking yourself a few questions, as some types of property tend to be more suitable for sale at auction than others. For example, if you have a property that is particularly run down, it is well known that auctions tend to attract purchasers who are specifically after a renovation or refurbishment project.
It could be that you have a property which is unique and difficult for a conventional estate agent to put a definitive price on. In these circumstances an auction will determine the market price for you, as bidders will pay the price they feel it is worth.
Also, if a property has proven difficult to sell for whatever reason, perhaps because of legal complications with covenants for example, an auction will hopefully end with a definite sale with no chance of it falling through.
Another reason could be that you simply need a quick and uncomplicated sale, perhaps if you are relocating, or moving abroad for instance.
What type of property is right for auction?
There are certain types of properties more suitable for sale at auction than by normal means and these are usually ones with “potential” i.e. with future profitability to the buyer as they may need renovating, extending or have planning permission already granted to improve the property. These types of property appeal to builders, developers or investors, and include:
Properties for improvement or that require modernisation make ideal lots and are in high demand, as they don't tend to be what estate agents' customers are looking for. They might prove hard to sell by traditional means, but can often achieve a better price at auction than more traditional methods of sale.
Repossession houses usually need to be sold as quickly as possible by the lender now in possession, to cover the former owner's debts.
Residential property auction including HMO (houses of multiple occupation) and blocks of flats are regularly seen at auction as buyers see the potential in the property and the future valuable investment. Tenanted properties let on ASTs (Assured Shorthold Tenancies) also prove popular.
Unconventional properties are difficult to value and are therefore often bought for their individuality. Unexpectedly high prices have regularly been achieved by this route as they tend to generate a lot of interest.
Development properties such as derelict buildings, vacant commercial premises, or those with potential for conversion, attract good levels of interest from buyers looking for a project.
Building plots and land (with or without planning permission) achieve immediate interest and surprisingly high prices at auction.
Commercial property auction such as shops, offices, industrial premises, public houses, garages are all commonly seen in catalogues and always attract a lot of attention when offered to the market.
Mixed use property auction combining both a commercial / business aspect in addition to its residential / living accommodation such as a shop with flat above.
Land auction such as amenity, paddocks, pasture, meadows, fields, moorings, city amenity land and other unusual land parcels are often seen under the hammer.
Ground rent auction demand has grown in recent years and auction houses have been offering more of these for sale. Generally these are affordable investments which are capable of providing a secure return.
What should I do next?
If you have decided that the auction route might be right for you and you want to discuss your options further, simply complete our free property valuation form, or call us on 0845 053 6906 to receive a free, no obligation property valuation.