What types of residential properties can be sold at auction?
At Pugh & Co we have probably sold every type of property asset you could think of.
It’s true that auctions do attract weird and wacky properties, however, that doesn’t mean that’s all that sells at auction.
We’ve sold thousands of residential properties and we are seeing a consistent year‐on‐year increase in our residential lot numbers. Residential property sells at auction because some sellers want a fast, secure sale. Once the gavel falls, contracts are exchanged, and completions occurs in 28 days.
Auction properties sell, on average, 4 times quicker than through private treaty and sometimes that is the priority of the seller. Below we have provided some examples of the types of residential properties that can be sold at auction.
Standard residential properties
We regularly sell houses for private homeowners that need to sell their property in a competitive bidding environment. Sales prices over market value are often achieved at our auctions and, as such, if you’re considering selling a residential property of this kind at auction you should expect a high level of demand from a wide audience of buyers.
Standard residential properties that sell particularly well at auction tend to be those which have scope to add value in some way e.g. requiring modernisation or those which are likely to obtain planning permission for an extension or development.
Residential properties in need of improvement
If you’re selling a property in need of improvement, whether that be an apartment needing cosmetic improvement, or a fire damaged house needing complete renovation, it’s worth remembering that you’re selling an asset, not a liability. Through selling thousands of properties like these, we know there are many people who see potential in these types of properties which is why it’s important to open it up to the widest possible audience.
When selling a property with potential it’s best to generate competition by marketing it to as many potential buyers as possible. This then allows buyers to compete for the property at auction, ultimately driving up the price. As a result, in many cases a poor condition property will achieve a higher price at auction than selling through an estate agent.
Tenanted & investment properties
Property auctions can be a great way to sell a tenanted property. Auctions are often a popular choice for landlords looking to sell one or more properties within their portfolios because property owners can typically achieve a quick and secure sale at auction, and in a much shorter timeframe than if the property was listed with an estate agent.
Tenanted properties are ideal for the auction room, as many landlords are likely to be amongst the bidders looking for their next investment. It’s common for a rental property with sitting tenants to be less appealing to a large portion of prospective buyers when selling on the open market. However, when selling at auction, investors typically see immediate rental income as a great investment.
Properties with sitting sell especially well at auction. This is because landlords won’t need to market the property straight away if the tenants are happily situated in the property and plan to stay there.
Probate properties are particularly well-suited for sale by auction. Most people want to sell the property as quickly and efficiently as possible. Selling at auction not only facilitates a fast sale, meaning beneficiaries can receive their share of the estate quickly, but it also provides the best price due to extensive marketing campaigns.
Probate properties are also often in need of refurbishment and modernisation. As outlined above, these types of properties always do well at auction, often selling above guide price to buyers looking for opportunities for renovation projects.
Executors regularly use public auction for the increased transparency and fairness they offer. The transparent way in which a property is marketed and sold ensures that the executor cannot be accused of any foul-play, such as under-selling.
Looking to sell a residential property at auction?
Why not request FREE auction appraisal for your property here? It only takes a few seconds. Or feel free to call us on 0345 505 1200 if you have any questions.
For details of our upcoming auction dates, follow this link.