According to The Essential Information Group, which monitors auction sales across the UK, there was an overall increase of properties sold at auction this May.
Their monthly newsletter also reported an increase in the amount of money raised at property auctions, which is up by 28% from last year.
EI Group founder, David Sandeman, commented on their latest findings saying he “was pleased to report on a positive set of monthly results”.
“In the 103 auctions held across the UK last month, 2,292 lots were offered and 1,676 lots were sold – up 18% and 22% respectively on April 2018”.
“The amount raised increased by 28% to £244.8M – over £53M more than last year” said David.
We’re delighted to see a positive spike in the amount of property sold at auction – but why are more people buying at auction? Let’s take a look.
There’s a real excitement about taking part in an auction. From the fast bidding to the final fall of the hammer – this method of buying has a lot of appeal.
Although it’s exciting, there are loads of other reasons why it’s the best way to buy your perfect property.
So, let’s take a look at the main benefits of buying under the gavel.
Everything about the auction process is fast which is one of the main reasons people prefer this method of buying.
Typically, when buying a property using the traditional estate agency route, there’s a lot of waiting involved. Waiting to view the house, waiting for your offer to be accepted and waiting to complete on the property.
At auction, the process of buying the property can take as little as a couple of minutes. If you’re the highest bidder when the hammer falls, the property is yours and contracts exchange immediately.
Once the auctioneer shouts sold and the gavel falls, that’s it, the property is yours. There are very few other methods of buying a property that offers a guaranteed purchase.
Although the open market has its advantages, there is a risk the sale might fall through.
When you buy a property at auction, you completely remove the risk of this happening. Once the hammer has fallen, the vendor is legally obliged to sell the property to you.
As long as you’ve done your research prior to the auction, buying a property is really simple. There are a few documents you’ll need to provide if you do intend to bid. These include:
– Photo ID, such as a driving license or passport
– Proof of address, this could be a utility bill or your driving license.
– Details of your solicitor
– Acceptable means of paying the deposit, including a cheque or debit card
It’s best to walk into the auction room with a plan to make the process even easier. You should know which properties you want to bid on and should have read the legal pack prior to the auction.
We also recommend that you walk into the auction with a plan of how much you’re willing to bid.
At auction, the bidding is live so you can see who is interested in the property and exactly what they are willing to pay for it.
This makes it easier to see how much you need to increase your offer by in order to be successful.
It also offers a fair, level playing field for all buyers. Everyone has an equal chance of securing the property of their choice and can monitor the competition as the auction pans out.
If you’re looking to purchase something a little different, auction is the best place to look. There is a wide range of unique properties that go under the gavel every month.
From residential investments to commercial buildings, auction tends to have something for everyone.
We instruct amazing properties almost every day, so be sure to check out our auction catalogue to see if we’ve got something perfect for you.
Many people who bid at auction want to bag a bargain – who wouldn’t! As there’s no set price that the property will achieve at auction, you could end up securing your dream home for less than your intended highest bid.
This leaves happy bidders with more money to spend renovating the property or investing in other properties.
We offer a wide range of quality commercial and residential properties from across the North West at our auctions.
We have a team of experts dedicated to helping you find your perfect auction property and can offer expert advice and help along your property journey.
To speak to a member of our auction team about buying a property at auction call 0161 443 4740.