More sellers turn to auctions

An increased number of vendors are turning to auctions due to the tough property marketplace.

There was a 51.5% increase in the number of residential properties lots coming to market, data from EIG Property Auctions shows.

Stuart Collar-Brown, residential auctioneer at My Auction, said: “Our own data shows that since schools went back at the beginning of September, there has been a substantial increase in call volumes from sellers.

“We’ve seen a huge increase in enquiries from sellers, all keen to secure a sale on an existing property already on the market. There is a noticeable shift in the market with an increased urgency from sellers who want the security a sale by auction brings.

“These sellers are looking to property auctions for security and certainty in the current and unpredictable market. With more rate rises expected and Christmas fast approaching, taking the auction route is becoming far more popular than we have seen in the last three to four years.

“One thing sellers must take into account is what the market is telling them in the run-up to the auction. The harsh reality of the current market is that if the market deems the price to be too high within the first 7-10 days of marketing, sellers must accept the market conditions, re-adjust and go again.

“If there are buyers willing to pay on or close to the guide price on a property but offer the guarantee of an immediate exchange of contracts with a non-refundable 10% deposit, sellers should seriously be considering taking these offers. If they don’t take it now, in three months’ time, they could be 10% or more less, based on what we are seeing from buyers right now.”