June Auction Newsletter
Richard Webb – National Sales Manager
When discussing auction as a method of sale with agents, it is apparent that some still have reservations, and I urge these agents to consider the value of what the auction process could be to a client, and the numerous benefits it brings. Just as they would promote the advantages of a chain free and/or a cash purchaser against a buyer who is set within a complex chain.
Given that 40% of our sales exchange contracts within 28 days of being listed for sale; once offered to sellers, many would see this as value to both them and their associated sale as opposed to circa three plus months of protracted conveyancing when selling via traditional Private Treaty method. Also, as agents; instead of suggesting an asking price which can be exposed to lengthy and tedious negotiation, allowing a seller to set their Reserve (their 'bottom line price') from the off, can provide them with comfort that they do not need to sell for less that they expect at the outset, allowing them to feel in control of their sale.
Offering auction is merely providing an alternative strategy for home sellers. Auction can assist with any property, but how it is presented to the seller is key.
There is much value in your Pattinson Auction tool kit - Speed, Security & Certainty. Homes Under the Hammer, it 'aint!’
Carol Clipston BDM - North West
The year so far has been incredibly successful for auction mainly due to the private treaty market remaining a little unsettled. Interest rates are having a substantial impact on the market, meaning many of the agents have slowed recently, despite it being clear that there are still many buyers out there.
In recent years, the auction method of sale has become much more mainstream as many agents now look to have an auction provision. Auction is no longer sniffed at and assumed to be just for problematic properties. Fine art, classic cars, and antiques are all sold via auction, as this is deemed the absolute best way for sellers to achieve a large audience and the best possible price, so why not a property?
It is encouraging to note that agents are now seeing auction as the best option for a vendor, as an additional service to be offered, regardless of the property type or its location.
With a general election afoot, this will undoubtedly slow the open market further for the next few weeks.
Martin Baker -Midlands Auction Manager
House prices have risen slightly so far this year, but hopes of a significant market uplift have been delayed due to stubbornly high mortgage rates. One of the big questions remains the same around the property marketplace in uncertain times, “is it a good time to sell?” The interest rates are still high, and cost of living could be affecting many buyers and sellers.
Within the Midlands region, the experience since the year's start has been one of hope and ever-increasing property sales with guaranteed buyers with completion times agreed to prior to purchase.
Buyers and sellers are becoming more frustrated with the open market, taking into consideration a high percentage of fall throughs on the open market, which currently fluctuates just over 30%, so why would you not want to buy a property through auction with a fall through rate of less than 1%? Purchasing through Pattinson Auction is appealing to buyers, sellers, and most first-time buyers, as well as mortgage buyers. The daily conversations are based around the certainty, speed and flexibility regarding completion timescales.
This is not an onerous journey for a buyer or seller, knowing that a pre offer valuation or survey can be carried out by a buyer, giving them that added security of a guaranteed and smooth sale.
