Despite continued reports on the doom and gloom in the property market in the UK, there are auction houses who say that their businesses are performing very well. Even in the midst of a property slowdown, property auction UK remains generally healthy due to the popularity of the benefits of buying at auction compared to purchasing houses through the traditional estate agency method.
Property auctions have been a widely held option for many people because of the benefits they offer to participants. A property auction UK is an accepted way of obtaining property because of the speedy transaction involved and the opportunity to acquire bargain properties. Regardless of the stabilising property market in the UK, auction houses have continued to report healthy business prompted by property investors looking to buy cheap properties quickly to convert into an investment property auction.
Robust sales at property auctions
Blundells Auction House in Sheffield has bucked the trend with its three auctions held in 2008 totaling over £4million worth of property sold under the hammer. While figures from the Essential Information Group signify that the percentage of lots sold across the UK is 62%, Blundells exceeded this with an astounding 88% of lots sold for 2008. This proves that there are still buyers out there who are more than happy to find and purchase the right property for them.
North East estate agents Pattinson is likewise reporting a healthy demand from property investors looking for houses via property auction UK. According to Pattinson, their monthly bidding session was becoming more popular, with over 100 listed homes for sale at their final auction for 2008. The firm says that vendors were making the most of reserve prices for additional security during the present market decline. The demand also stems from the preference for a quicker sale with a guaranteed reserve price.
Aside from these two auction houses, Sutton Kersh has also reported that it generated more than £2.5 million after selling 50% of its 68 offered lots at its final Liverpool property auction for 2008. This is aside from the post-auction sales that are yet to be completed. The company also reports that the number of residential lots it sold at auction in the UK in November increased by 40% year-on-year.
A new auction fad?
From the figures presented by auction authorities such as the EIG, it cannot be denied that property auction UK remains a recognised method of obtaining properties. But of late, there has been a new trend that many experts claim is bound to surge in popularity, too. It is called a Dutch auction.
A Dutch auction is a type of auction where the auctioneer starts with a high asking price and gradually decreases it in stages until a participant accepts the auctioneer's price, or until a predetermined reserve price is attained. When either of the two options is reached, the winning participant then pays the announced price. In theory, this kind of auction is comparable to a sealed first-price auction. A Dutch auction is particularly advantageous when there is a need to auction a property immediately. The reason is that with this type of auction, a sale never requires more than a single bid.
On the whole, many investors will always consider a property auction UK to be a profitable option because it offers the opportunity to provide a quick sale and the chance to acquire properties below market value - regardless of the condition of the property market.