September 2008

Auctions going, going up in popularity

HSN members consider alternative in current  economic climate...

ARE property auctions a viable alternative to traditional sales in the current economic climate?

According to a new survey by the 700-member Home Sale Network, just over a third of members would recommend that vendors consider auctioning their properties.

Regionally, responses varied with between 57 and 71 per cent of the respondents in the East Midlands, East Anglia and Greater London saying they would recommend auctioning properties as an alternative to the traditional route.

In the South West, North West and North, however, less than 25 per cent of members said that they would recommend an auction to people looking to sell their home.

Network members were also asked if over the past six months they had witnessed an increase in properties going to auction.

Nationally, just under 40 per cent said that they had seen an increase with Wales reporting the greatest rise, followed by East Anglia and Greater London.

The North and North West regions reported that auctions were up by around a third compared to figures six months ago.

Nationally, of those members who had seen a rise in the number of properties in their area that went to auction, 46 per cent said it had been an increase of less than 10 per cent.

Richard Tucker, the Home Sale Network’s managing director, said: “Selling at auction can avoid last minute hitches. When the hammer falls, the contract is legal and binding and the purchaser has to pay a 10 per cent deposit with the balance usually due within 28 days. This avoids the uncertainty of buying and selling in the traditional way and chances of the buyer pulling out become negligible.”