Hammer down property price
THIS year looks like being a good one for property auctions thanks to continued uncertainty over home sales. New data from Halifax, part of Lloyds Banking Group, has revealed that UK house prices fell between February and March – the first time in six months. While this is good news for those looking to buy their first home it’s not so good for anybody hoping to sell quickly, which is something auctions specialise in.
Propertymark, a professional body for estate agents and auctioneers, has highlighted the success of unusually early auctions in January and February this year.
“It just shows that there is an increased appetite for auctioning properties in the face of changing market trends, due to higher inflation and interest rates, and an increased awareness of the role auctions can play in the housing market,” says Propertymark’s David Leary, director of Essential Information Group. He’s also a National Association of Valuers and Auctioneers (Nava) Propertymark advisory panel member.
It’s worth bearing in mind, though, that sale prices are generally lower at auction than through an estate agent, because the whole point is to sell quickly.
Despite this, auctioneers are not allowed to have ridiculously low guide prices as this is considered to be “bait advertising”, so when you see a guide price for a property at auction it should be reasonably accurate.
For instance Devon-based chartered surveyors and estate agents Rendells recently sold a single-room 1800s Dartmoor chapel with a guide price of £45,000, for £69,625
Now it is running an online auction for a stone-built Methodist chapel in Whiddon Down, close to Dartmoor, with planning permission for conversion into two holiday lets of two and six bedrooms.
The 1906 chapel has a guide price of £195,000. Period features include leaded stained glass windows, wooden flooring, high curved ceilings, plus a garden and driveway parking area – and the village is close to the A30 with Okehampton seven miles west and Exeter 16 miles east.
The online auction is live now and open to view 24 hours a day, finishing on April 22, although potential buyers must register at rendells.co.uk/online-auction to bid.
Propertymark recommends potential buyers download the legal pack, which includes information on searches, title documentation and an EPC, and get their solicitor to check everything before bidding.
AUCTIONS are not appropriate for every seller or every property but if you are interested it’s worth signing up for one to see how they work, particularly if you can attend a physical auction. The speed of sales can be extraordinary.
However, Propertymark points out that there are fewer local auctions these days, and online auctions mean properties can be viewed worldwide. These are live for several weeks though, giving bidders time to investigate properly, preferably with site visits, and time to consult a solicitor.
And if you can’t decide between an estate agent or auctions, Propertymark advises using an agent partnered with a professional Nava Propertymark auctioneer – so you’ve got the choice of both.