Despite being the quicker method of selling a home, property auctions are one of the least preferred methods for home sellers in the UK.
Property purchasing specialist HBB Solutions reveal that only 1.6% of properties for sale go to auction.
On a regional level, the results show that the most homes are going to auction in the North East (4.7%) and East Midlands (2.4%) while sellers are least auction-confident in London (1%) and the South East (1%)
Why are property auctions so unpopular?
Although property auctions typically take one month to complete the purchase, certain elements of this process seem to contribute to its lack of popularity.
People with low budgets are the target market for auction, which is why homes usually sell for less than their market value through this process.
Sellers have many fees to cover and the thought of selling a property for less than it is worth and paying expensive fees on top of this is enough to put sellers off of the auction process altogether.
Furthermore, once the hammer falls the seller is unable to revoke the auction. Instead, they are committed to the sale.
Alternatives to auctions
Sellers hoping to sell their home quickly but without the uncertainty of a property auction, have various alternatives to choose from.
Sellers can put their home on the open market as a ‘quick sale’ property. This involves reducing the asking price under the provision that a buyer can complete the purchase quickly.
Relying on a sale company to put the property home in the shortest possible time frame for a price that is usually 75%-80% of its current market value is another alternative that sellers can consider.
Managing director of HBB Solutions, Chris Hodgkinson, commented: “For some sellers, getting the best price possible is the most important thing. But for others, speed is a priority. Maybe you’re selling because you’ve got a new job in a different part of the country, or maybe there’s been a death in the family or a relationship breakdown - either way, you want to get the job done quickly and cleanly.”
“In such instances, the auction room is offered as a good alternative to the open market but stock levels remain so low that sellers clearly aren’t comfortable with this route, at least not yet. There are just too many variables, too many unknowns which combine to make auctions too much of a gamble.”
“A similar price can be achieved and guaranteed by using a quick sale company, but you’ve got to be sure to pick one that is genuine and trusted.”