No longer just a domain for investors, developers and property traders, the auction room is now the preferred option of buying and selling property for a number of people looking for a fast and secure method of sale.
The beauty of the Auction Room is that there is no chain and the buyer commits legally on the fall of the gavel with an exchange of contracts secured by a 10% non-returnable deposit. So auction sales remove the stresses and uncertainty of ‘subject to contract’ transactions, ensuring that estate agents who market property through this method can speed up the process and eliminate the risks of ‘gazumping and gazundering’.
When you consider the time it takes to sell a home by traditional methods, it is easy to see the appeal:
- Property listed to offer accepted: 10 weeks
- Offer accepted to searches ordered: 36 days
- Mortgage arrangement: 3-6 weeks
- Searches to an exchange of contracts: 58 days
- Exchange of contracts to completion: 0-28 days
(Data: View My Chain)
The residential property auction market saw a significant increase in both the number of lots offered for sale and lots sold in 2018, as a high number of people continue to turn to auctions as a means of buying and selling property, fresh data shows.
It is clear to see the benefit of having a sales transaction under-offer and completed in a month, when you compare it to the average time it takes for a property to go ‘under offer’ in Swansea (100 days on average)!
According to the latest figures for October released by the Essential Information Group (EIG), with whom the Dawsons Auction Team work, there was a sharp double-digit increase in both the volume of lots offered and lots sold for the month, up 26% and 38% respectively.
The total amount of money raised by the group rose by just over 51% to £298 million. “Further increases are evident throughout the rolling quarterly and yearly figures, demonstrating an ever-strengthening market with growing numbers of buyers and sellers choosing auctions as a viable route to market,” said David Sandeman, Managing Director at EIG.
Speaking with Callum Thomas, our Auction Sales Negotiator, the Nationwide statistics fro EIG mirror those from the 5 Dawsons auctions during 2018. Callum says “we have always had a strong Auction market in South Wales and in 2018 we had an average of 19 properties listed at each event, but we have seen a real change in our audience. We have had a significant increase in ‘auction newbies’ attending, especially from further-afield areas, like London & Bristol. It would appear that many people are looking at investments in our location, whether it be buy-to-let, flips, pension plan or putting their kids on the market. We are really delighted to announce that we’ve been able to sell 91.3% of our listed stock at Auction, this is much higher than the National average for property listed in the traditional manner, which is 65% (77% for Dawsons traditional sales properties).”
“With regards to pricing, the Auction medium is still being used for more ‘run-down’ properties or those with development potential. Hence, the average sale price at Auction for Dawsons in 2018 stands at £99,981 (price does not include pre / post-auction sales). That said, it is an increase on 2017 figures and there is definitely a shift happening, with more family homes or more traditional property being listed.”
Compare this with the traditional (non-Auction) sales in County of Swansea 2018, you will see that there is a distinct gap still, but one which is being closed and is likely to close further during 2019.
- Semi-detached properties averaged £158,142.
- Terraced properties averaged £123,044
- Detached properties averaged £276,469.
This was similar in terms of sold prices to nearby Bridgend (£166,620) but was more expensive than Neath Port Talbot (£125,157) and Rhondda Cynon Taff (£124,686). The most expensive area within Swansea was Rhossili (£800,000) and the cheapest was Brynhyfryd (£99,695).
In the past year house prices in County of Swansea were 4% up on the year before and 4% up on 2016 prices, when they averaged at £166,648.
Taking in the areas from where we’ve seen a marked increase of auction buyers coming, it may suggest that Swansea is an area of particular interest to property developers or investors looking for rental properties:
Most of the sales in Central London over the past year were flats which on average sold for £1,565,096. Terraced properties had an average sold price of £3,379,980 and detached properties averaged at £3,000,000.
- Central London averaged £1,691,247
- West London averaged £1,244,006
- South West London averaged £743,632
- North London averaged £714,095
Last year most property sales in Bristol (County) involved terraced properties which sold for on average £317,913. Flats sold for an average price of £252,766, while semi-detached properties fetched £350,286.
- Bristol (County) averaged £315,338
- Gloucestershire averaged £300,133
- Somerset averaged £292,947
- Wiltshire averaged £289,584
During the last year, sold prices in Bristol (County) were 5% up on the previous year and 11% up on 2016 when the average house price was £285,126.
If you would like to speak to someone about the Auction process, and whether it would be beneficial to your property, or if you are interested in attending our next auction (Wed 27th February3pm) then read on or call us on 01792 478903 or 01792 478904.