EIG Property auctions. In this article we will summarise the findings, share case studies and discuss real life implications of the report. If you are interested in reading the whole report, you can find it in the News section of the eigpropertyauctions.co.uk website.
The auction market has been quite volatile in recent years. And it’s quite sensitive to events happening around the dates of particular auctions as well as being region specific i.e. certain regions can perform very badly while others on the same day do well. The big change in recent years has been the rise in popularity in online auctions, bidders registration and stricter AML rules. All those factors have impacts not only on the results but the way major players in auctions operate.
The main focus of the EIG report is the significant increase in repeat entries since 2018, and it tries to investigate the reasons behind those increases. The report finds that the three main reasons for properties being relisted are:
• Reserve Price Adjustment: Sellers or auctioneers may not be satisfied with the initial reserve price (minimum acceptable price), leading to a temporary withdrawal. The property may be relisted later with an adjusted reserve price.
• Legal Issues: Unforeseen legal or title complications may arise during the auction process, prompting a temporary withdrawal. Once these issues are resolved, the property may be relisted.
• Lack of Buyer Interest: If there is limited interest or bidding activity for a property, sellers might withdraw it to reassess marketing strategies, pricing, or to address any issues that may deter potential buyers.
At HAMMERED we notice that the properties that are offered with quite high reserve prices tend to go unsold or withdrawn and once the customers get that market reality check, they are either choosing to commit to holding the property, by either refinancing on a fixed rate of 5+ years or committing to sell by dropping the reserve price and relisting.