Despite continued reports on the doom and gloom in
the property market in the UK, there are auction houses who say that
their businesses are performing very well. Even in the midst of a
property slowdown, property auction UK remains generally healthy due to
the popularity of the benefits of buying at auction compared to
purchasing houses through the traditional estate agency method.
Property auctions have been a widely held option
for many people because of the benefits they offer to participants. A
property auction UK is an accepted way of obtaining property because of
the speedy transaction involved and the opportunity to acquire bargain
properties. Regardless of the stabilising property market in the UK,
auction houses have continued to report healthy business prompted by
property investors looking to buy cheap properties quickly to convert
into an investment property.
Robust sales at property auctions
Blundells Auction House in Sheffield has bucked
the trend with its three auctions held in 2008 totaling over £4million
worth of property sold under the hammer. While figures from the
Essential Information Group signify that the percentage of lots sold
across the UK is 62%, Blundells exceeded this with an astounding 88% of
lots sold for 2008. This proves that there are still buyers out there
who are more than happy to find and purchase the right property for
them.
North East estate agents Pattinson is likewise
reporting a healthy demand from property investors looking for houses
via property auction UK. According to Pattinson, their monthly bidding
session was becoming more popular, with over 100 listed homes for sale
at their final auction for 2008. The firm says that vendors were making
the most of reserve prices for additional security during the present
market decline. The demand also stems from the preference for a quicker
sale with a guaranteed reserve price.
Aside from these two auction houses, Sutton Kersh
has also reported that it generated more than £2.5 million after
selling 50% of its 68 offered lots at its final Liverpool property
auction for 2008. This is aside from the post-auction sales that are
yet to be completed. The company also reports that the number of
residential lots it sold at auction in the UK in November increased by
40% year-on-year.
A new auction fad?
From the figures presented by auction authorities
such as the EIG, it cannot be denied that property auction UK remains a
recognised method of obtaining properties. But of late, there has been
a new trend that many experts claim is bound to surge in popularity,
too. It is called a Dutch auction.
A Dutch auction is a type of auction where the
auctioneer starts with a high asking price and gradually decreases it
in stages until a participant accepts the auctioneer's price, or until
a predetermined reserve price is attained. When either of the two
options is reached, the winning participant then pays the announced
price. In theory, this kind of auction is comparable to a sealed
first-price auction. A Dutch auction is particularly advantageous when
there is a need to auction a property immediately. The reason is that
with this type of auction, a sale never requires more than a single
bid.
On the whole, many investors will always consider
a property auction UK to be a profitable option because it offers the
opportunity to provide a quick sale and the chance to acquire
properties below market value - regardless of the condition of the
property market.
Article Source:
http://www.articlesbase.com/finance-articles/
property-auction-uk-the-demand-continues-1014569.html About the Author
Parmdeep Vadesha is a property investment expert
and founder of the largest community of property entrepreneurs on the
web who buy below market value properties from distressed homeowners
facing repossession, divorce and bankruptcy. He writes a monthly
newsletter for over 70,000 property investors worldwide - http://www.Property-System.com | 