Bag A Bargain At Auction
The number of properties coming up for auction is on the increase. Auctioneers have to price properties keenly to maintain interest. However, buyers are still interested in the right sort of property, but they want a bargain in these difficult times.
As many people suffer at the hands of the property market, it is interesting to note the amount of activity in property auction rooms.
The number of properties and the number of buyers at property auctions can give a true, up-to-date feel of the property market in action.
The news is that 2008 is proving to be a tough year for auctioneers as well as everyone else in the property industry. To sell, properties have to be priced keenly with low reserves to even attract buyers through the doors.
The number of properties available for auction is on the increase. Figures for repossessions show there were 27,100 in 2007 and the forecast for 2008 is 45,000. One auctioneer reports a three to four-fold increase in the number of properties coming up for auction. This would appear to be the result of regular sales falling through, confidence dropping in the market, properties being over-valued and difficulties with mortgages.
There are, however, still buyers coming to the auction room. Auctioneers have to set their prices according to what is really happening in the market. Estate agents tend to lag behind.
Areas worst affected by the recent property slump have been the North and North-West, where prices for buy-to-let flats are down by up to 25%. In the North-East, some repossessed new flats in Newcastle have been sold at just 60% of their original price.
New flats and renovated properties are currently struggling in the auction market. What are popular are unmodernised properties with the potential for renovation, or conversion to flats. It seems evident that buyers – even at auction – want the bargains with the best potential for earning money in the future, when the property market picks up again.
If you are a potential auction property buyer, remember to study the catalogue before the day of the auction; and actually visit the property you’re interested in; check guide prices online; and register your interest.
Even in these difficult times, you could still bag a bargain.
