Property Auction UK: The Demand Continues

Despite continued reports on the doom and gloom insecurity during the present market decline. The
the property market in the UK, there are auctiondemand also stems from the preference for a quicker
houses who say that their businesses are performingsale with a guaranteed reserve price.
very well. Even in the midst of a property slowdown,Aside from these two auction houses, Sutton Kersh
property auction UK remains generally healthy due tohas also reported that it generated more than
the popularity of the benefits of buying at auction£2.5 million after selling 50% of its 68 offered lots
compared to purchasing houses through the traditionalat its final Liverpool property auction for 2008. This is
estate agency method.aside from the post-auction sales that are yet to be
Property auctions have been a widely held option forcompleted. The company also reports that the number
many people because of the benefits they offer toof residential lots it sold at auction in the UK in
participants. A property auction UK is an acceptedNovember increased by 40% year-on-year.
way of obtaining property because of the speedyA new auction fad?
transaction involved and the opportunity to acquireFrom the figures presented by auction authorities such
bargain properties. Regardless of the stabilisingas the EIG, it cannot be denied that property auction
property market in the UK, auction houses haveUK remains a recognised method of obtaining
continued to report healthy business prompted byproperties. But of late, there has been a new trend
property investors looking to buy cheap propertiesthat many experts claim is bound to surge in popularity,
quickly to convert into an investment property.too. It is called a Dutch auction.
Robust sales at property auctionsA Dutch auction is a type of auction where the
Blundells Auction House in Sheffield has bucked theauctioneer starts with a high asking price and gradually
trend with its three auctions held in 2008 totaling overdecreases it in stages until a participant accepts the
£4million worth of property sold under theauctioneer's price, or until a predetermined reserve
hammer. While figures from the Essential Informationprice is attained. When either of the two options is
Group signify that the percentage of lots sold acrossreached, the winning participant then pays the
the UK is 62%, Blundells exceeded this with anannounced price. In theory, this kind of auction is
astounding 88% of lots sold for 2008. This proves thatcomparable to a sealed first-price auction. A Dutch
there are still buyers out there who are more thanauction is particularly advantageous when there is a
happy to find and purchase the right property for them.need to auction a property immediately. The reason is
North East estate agents Pattinson is likewise reportingthat with this type of auction, a sale never requires
a healthy demand from property investors looking formore than a single bid.
houses via property auction UK. According toOn the whole, many investors will always consider a
Pattinson, their monthly bidding session was becomingproperty auction UK to be a profitable option because
more popular, with over 100 listed homes for sale atit offers the opportunity to provide a quick sale and the
their final auction for 2008. The firm says that vendorschance to acquire properties below market value -
were making the most of reserve prices for additionalregardless of the condition of the property market.