The property auction sector has developed considerably in the last year, with a plethora of real estate successfully being sold under the hammer. It’s an exciting process that often sees purchasers making a great deal, while the vendor can sell quickly for a good price. With that in mind, there are a variety of reasons why buyers and sellers are making the switch, with all sorts of benefits for both sides of the coin.
To begin with, selling your property at an auction puts it on a unique platform that makes it particularly visible to different parts of the market. Away from the hundreds of thousands of properties currently for sale, the auction market cuts through the noise and selects only the very best real estate in each sector.
In fact, the team invests endless hours into vetting properties in advance, so as to ensure everything is in place and that they really are top properties – from the numerous properties they review, around 20 are selected to go into the lot at one go, with a limited number of auctions held every year.
This means that buyers know in advance that they are getting a solid deal. The price will already have been carefully negotiated to real market value and all the paperwork will be in order. Essentially, no stone is left unturned in ensuring that auction properties are some of the premium ones available anywhere on the market. And there’s a great choice too.
Selling your property at auction puts it on a unique platform
Recent auction lots have included everything, from one-bedroom apartments being sold on plan to commercial properties, houses of character, villas and penthouses. This gives buyers the opportunity to explore a cross-section of the market and to know that they are seeing the best properties in each sector.
The vendors, meanwhile, will experience an in-depth market analysis, through comparisons with other recently sold properties of a similar type to determine exactly the sort of price they can expect from sale by auction. There will be a reserve price put on the property, so they can be sure they won’t get less than that price, but that price could rise, depending on how popular it is once it gets to auction, or even beforehand if it catches the eye of a buyer in the run-up to the auction itself.
In the last year, some auctions have led properties into a bidding contest, with prices rising well above what they were expected to achieve. This of course is a huge plus for the vendors, but it’s also positive for the buyers as they have the chance to keep bidding until they secure the property of their dreams.
In the last year, some properties have just scraped the reserve price, thus selling for a bargain, while others have sold for 12 to 15 per cent above the market value, which meant a great deal for the vendors. And with over 80 per cent of all auction properties being sold before or during auction, that also gives vendors the peace of mind to know they can make plans and stick to them.
For the purchaser, meanwhile, there’s the chance to get to know the property really well before they buy it, and they can view it as many times as they like. They can also be sure that the property has been checked by the team, and that everything is in order to ensure that the sale won’t materialise because facts were not checked properly. It’s a safe bet, and one that has been carefully considered.
All in all, it is no wonder that auctions are becoming one of the most popular ways to sell or buy property. They provide access to the very best real estate on the market at the best prices, and also help ensure that a fast, solid sale is made for the vendor. It’s a method to certainly consider when you buy or sell your next property.
Jeremy Borg Grech is auctions manager, Remax Auctions.