In recent months, we have been dealing with a rising number of enquiries from property owners keen on auctioning their properties. This surge in interest is largely attributed to auctions being perceived as a hub of certainty and action, contrasting the unpredictability often associated with traditional estate agents and private treaty sales. Auctions represent a realm where transactions are not just possible but probable, given the right conditions and preparations. And from our perspective, it also shows a slightly negative sentiment towards buying properties for investment. These are symptoms of things that we continue mentioning in our articles: increased regulation for landlords, complex and increasing tax burdens for properties held in a personal name, plus investors coming off their fixed rates and realising their properties are not making a profit anymore. While auctions are seen as a hub for action, sellers need to prepare for the realities of the current market in order to achieve a sale and this article is aimed at doing just that.

The auction advantage
Auctions offer a unique advantage in the real estate market. They bring together motivated buyers and sellers in a competitive environment that can drive prices up, ensuring a quick and efficient sale process. However, to truly capitalise on this opportunity, sellers must understand the nuances of auction sales, from accurately pricing their property to preparing it in a way that appeals to potential buyers.

Identifying your buyer
Knowing your target buyer is crucial. Auction properties attract a diverse range of interests, from investors and traders looking for tenanted properties to developers seeking land with potential. Understanding who is most likely to bid on your property enables you to tailor your preparations and marketing to catch the right eyes. We are always trying to communicate how we are arriving at a reserve price valuation (next step!) by putting ourselves and our client in the shoes of potential buyers.

How will they view this transaction, what will be attractive to them, how are they going to finance it, how much profit they tend to want to make, what their transactions costs are likely to be, how motivated might they be to register to bid and not want to let go of the property? And finally, knowing the right buyer helps us choose the right auction house for each property.