Autumn is traditionally a busy time for the property market, as buyers return from their holidays and begin to focus on moving home before the Christmas and New Year celebrations.
While this is traditionally the case in the open market, it’s also a busy time for our auction team. Both property investors and savvy residential buyers are increasingly choosing the auction route to secure their dream home or investment opportunity quickly.
September’s online auction has certainly reflected a shift toward securing investment opportunities or renovation opportunities, with several properties that have previously struggled on the open market and which required a little TLC being snapped up by eager buyers at impressive prices. A huge win-win for both buyers and our happy vendors!
As always, we’re busy preparing for our next online auction, which will take place on 2nd-3rd October 2024. We also have a few properties remaining from our September event, so if you’d like to learn more about selling your property at auction or are interested in securing one of our lots before they go, simply visit our auction page on the link below.
During our September property auction, contracts were exchanged on over 38 properties, generating over £5.6 Million for our vendors. You’ll find the full list of properties, as well as our remaining lots on the link below – so take a look before they all go!
Choosing our favourite auction success stories has been as challenging as ever, however with the theme of helping clients with a quick sale and providing unique investment opportunities, a few obvious examples stood out.
Take a moment to learn more about how selling at auction can produce fantastic results for both vendors and buyers. We’re sure you’ll agree that the results here make for compelling reading!
One of the myths we hear around auctions is how ‘auction properties sell for less than their market value’. However, the truth is that a property is only worth what a buyer is willing to pay for it and the final sale price of an auction property will also depend on the vendor’s motivation for selling.
Often Vendors selling at probate or with properties that represent good renovation opportunities will set a lower guide price to generate interest and attract potential buyers. This can lead to the misconception that auction properties sell for lower prices, however with a specified reserve price a property will never sell for less than a vendor is willing to accept.
Furthermore, our auction team are experts in choosing the best strategy for every property selling situation, which means that our vendors are often completely taken by surprise at just how well their home performs at auction.
One example of this can be seen in our first auction success story, 52 Frederick Street in Denton.
After spending nearly two years on the open market, the owners of Frederick Street had endured multiple collapsed sales and found that they were receiving consistently low offers for the property.
This naturally left the owners feeling deflated and unsure whether they would ever achieve the value secured against their home. When we heard from the vendors, we were keen to ensure that we moved quickly to get their property sold while securing the price they needed.
We agreed to sell at auction and set a guide price of £95,000, as we were sure that this would generate a lot of interest. The property attracted seven offers before the sale, but it was clear that Frederick would perform well at auction and it certainly didn’t disappoint.
On the day of the sale, the hammer came down at £130,000, an impressive £35,000 above the starting bid. Just as important for the owners, the immediate exchange and 28-day completion provided them with much-needed relief after a long and challenging journey.
As an impressive probate property with a lot of potential, we knew that Canterbury Road would be a tempting lot for the right buyer. Although the property was in need of around £50,000 in renovations, its spacious rooms and popular location made it the ideal spot for a wonderful family home.
By setting a guide price of £140,000, we believed that we could generate significant interest in Canterbury Road and with 12 offers coming in before the auction we were soon proven right! It was decided to let the home proceed to auction and on the day the hammer finally came down at £223,000.
This was a fantastic result, as the executor was eager to sell the property as it had been going through probate for a long time. The success of the sale was exactly what they wanted and at a figure which was more than they had expected.
It’s not uncommon for landlords to find their properties left in a poor state when a tenant leaves. In these situations, the owner is faced with a choice between investing in refurbishment before returning to let or selling the property to recover their costs.
The vendor of Gordon Terrace had decided to sell on this occasion and wanted to sell the property for £110,000. We decided on a guide price of £95,000, which generated six offers prior to the auction.
On the day of the sale, Gordon Terrace finally sold for £142,000 – £32,000 more than the owner had expected! The vendor was extremely pleased and is now planning to sell several other ex-rental properties at auction.
The strategy of setting a low starting bid isn’t suitable for all properties, however for investment strategies built on buying and selling property quickly, it is an effective way of achieving a quick and profitable sale.
Although in need of some renovation, this double-fronted quirky detached stone cottage was ideally placed for an attractive family home.
The auction strategy worked well, as the property eventually sold for £106,000 on a guide price of £50,000! The vendor has sold almost 20 properties through Edward Mellor, enjoying a 14-day completion each time.
If you are looking to sell your property at auction, speak to our auction experts today. Edward Mellor is a leading national property auction house and the only organisation locally that combines auction, estate agency and financial services all under one roof.
Our next online property auction is set to take place on 2nd – 3rd October 2024, so register today to bid and access legal packs for the properties on offer.
If you would like to find out more about selling at auction or how to register to bid, please do not hesitate to contact the auction team on 0161 464 7903 or email [email protected].
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