A property auction in London is a great way for informed buyers to find real estate bargains.
Property auctions in London offer a wealth of opportunities for buyers, with a wide range of properties available in virtually every neighborhood and section of the city. This article delves into some interesting facts and figures about residential property auctions in London, shedding light on the current market trends and the potential for finding bargains.
Growing Numbers: Recent reports indicate a significant increase in the number of properties being auctioned in London. According to an article in the Derby Evening Telegraph, the volume of homes up for auction in the city has more than doubled in the past year. This surge in auction listings is particularly notable for repossessed properties, with a staggering 455 properties offered for auction in a three-month period. This represents a more than two-fold increase compared to the previous year and a substantial 53% increase compared to the previous quarter.
Opportunities Amidst Challenges: While the increase in auction listings may reflect a rising number of mortgage defaults, it also presents an opportunity for buyers to find remarkable bargains. The growing availability of distressed properties in London further contributes to the opportunities at property auctions. Coupled with the challenges of obtaining mortgages in the current credit crunch, the real estate market in London has experienced a downturn. As a result, mortgage lenders are turning to property auction houses as a means of recovering funds, leading to a higher volume of properties available for auction.
Benefits of Property Auctions: The rise in property auctions in London offers several advantages for prospective buyers. Firstly, it provides access to a diverse range of properties across various price ranges, allowing buyers to find properties that suit their budget and preferences. Secondly, the auction format offers a transparent and efficient process, with clear bidding procedures and fixed timeframes for decision-making. Additionally, property auctions often present opportunities to secure properties at below-market prices, offering the potential for substantial returns on investment.
Navigating the Auction Process: To make the most of property auctions in London, buyers should familiarize themselves with the auction process and conduct thorough research. Auction catalogs and online listings are valuable resources for identifying properties of interest and understanding their specifications and conditions. Prior to the auction, it is essential to conduct property inspections and obtain any necessary legal or professional advice. Being well-prepared and having a predetermined budget will help buyers make informed bidding decisions and increase their chances of securing desirable properties.
The abundance of property auctions in London provides a promising landscape for buyers seeking residential properties. The substantial increase in auction listings, particularly for repossessed and distressed properties, presents unique opportunities for finding bargains. However, buyers should approach auctions with careful consideration, conducting thorough research and understanding the auction process. With the right preparation and strategy, property auctions in London can be a fruitful avenue for acquiring properties and capitalizing on the current market conditions.
Sample Auction Property Prices
In spite of a sluggish market, there are bargains to be had from many property auction houses in London, especially in the realm of repossessed residential property or private homes. In fact, the percentage of repossessed properties available for auction has increased from 13.9% in 2007 to about 35% in 2008. In addition, hundreds of building lots are also available. So, what’s the point of all these numbers? Well, it’s to tell you that a property sale auction in London or its environs can net a buyer up to a 40% discount on a property’s selling price. Here are a few examples:
£260,000 paid at a property auction for an Islington apartment. Comparables listed with traditional real estate agents range from £400,000 to £450,000.
£165,000 paid at auction for a Tooting apartment. Comparables are at least £80,000 higher.
£2,030,000 paid at auction for a townhouse in Kensington that contains 5 2-bedroom apartments and 2 studio apartments.
Just these few examples show that auctions are more cost effective, because auction prices tend to reflect real market prices of property as opposed to the inflated prices offered by many agents. And despite the fact that mortgage money is tight, buyers are finding creative ways to finance their properties. For example, buyers are banding together and pooling their money or looking for financial help from parents or other family members. And if you’re willing to be flexible as to where in London you buy your property, you’re more likely to find a bargain property for auction London. You’ll also benefit if you time your purchase properly, for example, buying during a recession when prices are depressed and selling when prices are on the rise.
Bottom line: consider buying at a UK property auction in London because the price is highly likely to be less inflated and therefore more affordable than properties listed by traditional real estate agents.