With a host of benefits, including speed of transaction and fewer fall-through rates, it is no surprise that the popularity of property auctions is on the rise. 2022 has been a colossal year for the property auction market. Research shows that in May alone, an impressive £480m was raised via auction in Britain, up 24% on the total raised in May 2021.
So, what exactly is behind the surging popularity of buying and selling property at auction? This method of bidding for a property has multiple benefits, which buyers and sellers are increasingly recognising.
In a current market where stock in low and demand is high, auction offers a viable way of buying and selling all types of land and property.
Auction House London explores the top ten benefits of buying property at auction.
- Speed of sale
There are fewer quicker ways of buying a house than via a property auction. The timescales of the process are fixed from the beginning, meaning buyers have knowledge of how long the process will take before committing to purchasing a home this way. Successful bidders will usually complete on their purchase within 28 days of the auction.
- Fair chance for all
Property auctions are non-discriminatory. Rather than a first come first served model, everyone has a fair chance and opportunity to place bids.
- Property auction selling guides
Buyers can benefit from information about processes and timescales presented in detailed buying guides. As our Guide to Buying at Auction informs, the successful bidder will be contacted by a member of the Auction House London team during the auction to provide the deposit payment. The buyer will know how long they have to carry out any inspection. There is no risk of missing out on the sale like there can be when purchasing through traditional, non-auction methods.
Our general conditions of sale lists the conditions that are applied to the contract, except to those that are varied by special conditions or by an addendum.
- Higher completion rates
Put simply, once the hammer lands, the property belongs to the highest bidder. Nobody can gazump on the deal, or backpedal to get out of it. There are no chains involved that can hold the sale up and even put it at risk of collapsing. Usually in less than a month, the successful buyer will have the keys in their hands. As the process is not affected by lengthy delays from multiple parties or breakdowns in communication, buyers at auction avoid the stress and uncertainty that often accompanies the traditional estate agent method.
- Transparency
When it comes to property transactions, transparency is crucial, giving buyers peace of mind that the purchase is genuine and there won’t be any hidden ‘surprises.’ In fact, in a bid to make the industry more transparent, in May this year a new set of rules governing property sales advertisements and listings in the UK were rolled out. The change was brought in by the National Trading Standards Estate and Letting Agency Team to help improve transparency.
The good news is that at property auctions the entire process is transparent. Buyers know exactly what they are up against. They know what other bidders are willing to pay for the home, meaning there is no risk of gazumping. They also know how long the process will take.
- No surprises
Unlike when buying through traditional methods, there are no ‘surprises’ when using an auction to buy a property. Auction House London’s friendly and professional team of property auction experts will guide the buyer through the whole process. We will send a copy of the legal pack to the buyer’s solicitor if stated on the bidding form.
With property auctions, the process is more streamlined, quicker, and efficient. There is less room for nasty surprises like a buyer somewhere down the chain pulling out and putting the whole chain in jeopardy.
- A wide choice of properties available
With a growing number of property owners choosing to use auctions to sell their homes, buyers have access to a broad range of property available at auction. You only have to check out our auction catalogues for proof of the quality and sheer number of properties we have listed, month in, month out. Have a look at the lots already listed for our next property auction for a taster of what you could be bidding on and own.
- Earn an immediate income
Another key benefit of buying at auction is that for buyers looking to make investment purchases, they can be earning an income from a property more quickly than they could be if they were to go down the traditional estate agency route. Furthermore, Auction House London regularly has tenanted stock available, meaning a buyer will start receiving a rental income from the day of legal completion.
- Reputable auctioneers
Like with every industry, there are ‘good’ property auctioneers and there are ‘bad.’ At Auction House London, buyers can enjoy an unrivalled auction service. Our auctioneer Andrew Binstock is widely considered to be one of the nest auctioneers in the country.
- Customer service
Andrew Binstock & Jamie Royston are backed up by a team of professional, compassionate, and experienced property auction professionals, who always put the interests of our clients first. Buyers are never left waiting for a query to be answered, as we pride ourselves in delivering impeccable customer service.
If you have any questions about buying a property at auction, don’t hesitate to get in touch with the Auction House London team. Give us a call on 020 7625 9007 or email us at info@auctionhouselondon.co.uk.