A Property Auction, like any other form of auction, is a process by which Residential or Commercial Property (and plots of land) are sold to the person making the highest bid at during the auction process.
There are 2 types of Property Auction, Private Auctions open only to select parties ( e.g. banks) and Public Auctions open to all comers.
There are a variety of different types of auction which are usually a factor of the number of properties or ‘lots’ up for sale.
What is the Property Auction Venue?
They might be held at a dedicated Auction room or ‘Sale Room’, Conference or meeting room, Hotel, restaurant – even a pub! There are also a number of online auctions cropping up for which the venue is effectively virtual.
Finding a property auction can be achieved online, through yellow pages and other directories.
Fridaysmove maintain comprehensive list of Auction houses on our Find a Property Auction database.
What is a Property Auction Process?
Sellers list their properties for auction in the months, weeks and sometimes even days or hours run up to the auction date itself.
Interested parties obtain details of the Property Auction Lot in the before the day itself and conduct their own due diligence into the property itself.
On the day of the auction bidders (or observers – we strongly advise you attend a few auctions to understand the process before taking the plunge) usually attend the venue to bid if they are interested. Sometimes bidders use a proxy bid, place bids over the phone or they employ a professional to bid for them.
The auction is conducted by an auctioneer who is a qualified professional.
What is the future for Property Auctions?
Awareness of auctions has certainly gown over recent years thanks to the sustained property boom and the degree to which the British public have embraced the property buying and selling process.
Banks, building societies and other lenders have for years used Auctions to get rid of large numbers of repossessed homes quickly. Economic predictions suggest continued growth in Property Auctions in 2012 (relative to the property market as a whole). This is largely due to recessionary factors which include an increase in repossessed properties, distressed sales, negative equity properties and other unfortunate products of a troubled market.
From a buyers point of view this makes Auctions an increasingly attractive prospect as the opportunity to grab a bargain will doubtlessly increase.
Care must always be taken at Auction however as they are a typical dumping ground for properties with defective legal titles and structural problems. Only the foolhardy would buy at auction without a qualified Conveyancing Solicitor looking at the legal pack and a surveyor carrying out a Home Buyers Survey beforehand. Staggeringly it is estimated that only 20% of people do this but buyers should take note that the 20% is usually people who have bought through auction before or do so regularly. In other words the pros!