Are Brits abandoning the Estate Agent for the auction house?
Property Auctions are on the rise; it's clear to see that this method of selling is a side effect of the pandemic. When attending Auctions in person has been off-limits Online Auctions and the stamp duty holiday have driven more buyers and sellers down this selling and buying route.
During 2021 nearly 40% more property by value has been sold at auction, compared to 2019.
How did Covid trigger this surge in property auctions?
#1 - The shutdown
The most obvious reason is the shutdown of the property market during spring 2020, followed by the stamp duty holiday to get transactions moving. Property is a great indicator of economic development so it made sense to encurage movement. Lots, and i mean LOTS of sellers and buyers hurried to take advantage of the savings on offer.
But the average agreed sale has a fall through rate of nearly 40% and most property transactions take around six months. Buy selling at Auction this method greatly reduces the chances of a buyer pulling out as you've exchanged contracts on the hammer and has a quicker turn arround time with the average sale being 28 days.
#2 - The Demographics are Changing
The demographics of Bidders, Sellers and Properties are changing.
The new Bidders. Historically, auctions appealed more to investors and property developers rather than those looking for a home of their own. But this imbalance has reversed during lockdown, as many traditional investors hang back while hopefull homeowners rush to take advantage of the stamp duty holiday.
John Pye Property has seen a rise of 52% in the number of bidders compared to 2019
The new Sellers. With the rise in buyers, sellers have been natutaly drawn to Auction as a vehicle to achive a sale. The surge in market activity has greatly impacted Estate Agents Service levels and conveyancing timeframes. Before the pandemic the conveyancing process was complete within 10-12 weeks, fast forward to today and you can be wiating anywhere from 15-25 weeks. Its not only the speed sellers and buyers can take advantage of but selling at Auction also reduces the chances of a buyer pulling out as you've exchanged contracts on the hammer falling.
With a new demographic of seller comes a new type of property.
"some of the properties we’ve sold over the past few months truly prove that we can sell just about anything under the hammer." – Andy Thompson SDL Auctions
From car parking spaces to farms, huge city centre apartment blocks to cottages in the hills. There has never been more variety in the properties selling at Auction. Find out more up to date information here from the National Auction House SDL on Andys Blogg where he reviews January 2022's property market.
No Fees !
Lets be honest, when you can sell your property quickly and without any fees its something your going to give consideration to right?
No matter your property or your circumstances, I am on hand to help you achieve a fantastic result. To find out more about what’s involved with selling by auction, take a look at our selling guide or get in touch with me today on firstname.lastname@example.org