After a hugely successful September sale, the Edward Mellor Property Auction team is pulling out all the stops with two online property auctions for October 2024. The first of these events was held on 2nd-3rd October, generating some amazing results for our sellers.
In this article, we’ll look at the benefit of selling at auction, why more sellers are turning to Edward Mellor, and some of the most impressive results from the first of our October auctions.
Selling at auction is becoming an increasingly popular option for vendors in both residential and commercial property markets. The Essential Information Group (EIG) ‘Property Auction Insights June 2024’ report reveals that property auction sales across the UK have continued to grow over the past five years.*
The biggest increases in sales have come from HMOs/Blocks (+66%), Garages (+62%) and Terraced Houses (+37%), with bungalows, detached houses and interestingly, land, following the same trend.
Outside of London, the North West is one of the UK’s most prevalent regions for auction growth, which makes the area a great location for both buyers and sellers looking to take the next step on their property journey.
Online property auctions provide several benefits over traditional market sales. Key amongst these is the speed of sales. Property sales can take months or even years in extreme cases, whereas auction sales can be completed in just weeks.
This is especially important for sellers who need to complete a sale quickly. For example, for vendors selling at probate, investors aiming to reduce their portfolio or change their investment strategy, or business owners who need to sell as part of a growing enterprise.
Selling at auction allows transactions to run smoothly while delivering similar marketing strategies as employed in traditional property sales, ensuring that listings are advertised to the right potential buyers.
Auction sales are also a good option for vendors with properties that might otherwise struggle on the open market. Tenanted homes, unmortgageable properties, and run-down renovation projects are all commonly sold at auction across the UK.
Selling at auction can achieve some genuinely impressive final sale prices. There is a common misconception that homes sold at auction do not achieve their true market value, but this is untrue and fails to account for several important factors.
Firstly, any property is only worth what a buyer is willing to pay for it. However, this doesn’t mean that a seller is at risk of selling their property at an unfair price at auction. Edward Mellor works with sellers to ensure that the reserve price set for every property we sell is acceptable to the vendor and attractive to potential buyers.
There can be several circumstances that impact the sale price of a property, which have more to do with personal circumstances and the motivations behind the sale than the method of selling.
For example, vendors selling at probate or looking to unlock cash for a new investment may be more interested in unlocking funds quickly rather than achieving the highest possible price. In these instances, the benefit of a rapid and assured sale represents a huge benefit to the property owner, who can expect to receive the funds from their sale in as little as 28 days after completion.
Where sellers do want to achieve a higher ‘market value’ for their property, the auction reserve price will reflect that. This means that the final sale price will be at least similar to what can be achieved on the open market, if not higher.
It should also be noted that setting a lower guide price (and a suitable reserve price) can often generate a lot of interest in a property, meaning that the sale price can be much higher than the listed guide price. This is why having an experienced auction team that you can depend on is vital!
Edward Mellor has been helping clients buy and sell property for over 40 years. As the leading property auction house across the North West, our team can help vendors achieve the best possible price for their property while meeting their financial or personal goals.
If you would like to learn more about selling at auction, simply contact us by following the link below. Alternatively, read on to see a few examples from our recent October auction, showing how our proven auction process can deliver outstanding results!
This attractive five-bedroom bungalow set within the popular location of Gee Cross, Hyde came to market when the family inherited their late mother’s home through probate.
The family were understandably facing significant financial and emotional challenges and had become overwhelmed by the traditional market process.
Although the house had remained in the family for decades and represented a much-loved home, the property was in need of costly renovation, so the family decided to explore selling the property at probate via auction to achieve a fast and reliable sale.
Following professional advice, the property attracted significant attention, generating numerous inquiries and even several tempting pre-auction offers. On auction day, the family watched as competitive bidding pushed the price higher than they had anticipated, with the final bid reaching £205,000 – £40,000 above the reserve price!
The successful probate house sale at auction allowed the family to close that chapter of their lives swiftly and with a substantial profit, leaving them both financially and emotionally relieved.
This property also came to auction as part of a probate sale, involving three executors who were all relatives. Initially unsure of the best way to sell the property, they had an open market valuation done. However, due to the property’s condition and the extensive work required, it was ultimately referred to auction. After discussions with all executors, the team worked with the vendors to agree on a minimum reserve price, reflecting the necessary work while ensuring a fair valuation that would meet the obligations to the beneficiaries.
The auction process offered an ideal solution, providing transparency and competitive bidding to establish the property’s true market value. Listed with a guide price of £130,000 and one month of marketing, we generated significant interest, resulting in 18 viewings, 6 offers, 17 legal pack downloads, and 26 registered bidders.
On auction day, the excitement peaked as 82 bids were placed right up until the final moment, with the property selling for an incredible £226,000—£95,000 above the original guide price.
The executors were thrilled with the result, knowing they had achieved the best possible outcome for the beneficiaries.
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].
*Property Auction Insights June 2024
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