Berkshire homebuyers and sellers are heading to property auctions in greater numbers.
Research from digital property pack provider Moverly has revealed there has been an 11.3% increase across the country in the number of home sellers turning to the auction room to combat cooling housing market conditions.
Berkshire has seen an 11.9% rise, with 160 lots coming under the hammer since the start of last year. The average price of transacted properties at auction in the Royal County stood at £406,222.
Moverly analysed historic data on the property auction market, looking at the number of homes sold at auction, the average price of an auction property and the total value of property sold, to see whether a cooling housing market has further increased people’s interest in the auction room.
Buying and selling property at auction was once the reserve of adventurous or professional property players, but the rise of online auctions has created accessibility for normal, everyday buyers and sellers to get involved.
While the average price of an auction property has declined by -1.8% year on year to £190,871, there was still a staggering £2.9 billion worth of residential property sold at auction in 2022/23.
Moverly co-founder Ed Molyneux, said: “In cooling market conditions, many sellers are struggling to find and secure good buyers. Rather than playing the waiting game while property values continue to stutter, an increasing number are heading to the auction room, accepting the marginal hit on the sale price in return for a quick and certain transaction.”
Closer to home, First for Auctions handles property auctions for the Romans real estate agency.
A spokesperson said: “Our auctions have gained significant popularity in recent years, increasing by 20%, even more so with our online auction format, which is very similar to eBay for property, reaching a wider audience than our traditional saleroom in Green Park, Reading.”
The reasons behind the decision to buy and sell through auctions are many.
The spokesperson said: “With the average property sale taking on average 171 days (nearly six months) from instruction to completion, and with the uncertainty of not exchanging contracts until the end with the potential for renegotiation, we continue to speak to many sellers who are growing despondent with the “normal” way to sell, looking for the speed and certainty of our method.”
Buying a property at auction with a mortgage is possible, but it is essential to do your research.
First for Auctions said that properties that are sold through auctions are typically priced below market value.
The completion time for buying a property at auction is typically much shorter than a traditional sale, usually around 28 – 42 days
It is recommended that you thoroughly read the legal documents. When you bid, it is on the basis that you have accepted all the terms and conditions in the legal documents, whether you have read them or not.
If you are the highest bidder when the auction ends, contracts are exchanged between you and the seller. Both parties are legally bound to complete the transaction.
