THE CHANGING FACES OF PROPERTY AUCTIONS.
Finally, after what has felt like a very long winter, the weather is on the change. The clocks have sprung forward and doesn’t it feel better to be finishing work when it’s still light?
Our office has been like a doctor’s waiting room at times this winter but it’s amazing what a bit of sunshine can do to lift your spirits. Even Chelsea’s been in a good mood this week…
… and it’s not just the weather that’s been changing around here. Since Scott’s arrival back in September, the team has continued to grow with the latest recruits being Emma and Hanna and more to follow soon. We’ve also expanded the auction department further with the opening of our Manchester City Centre office. The office on Mosley Street is headed up by Nick and is the hub of all our commercial activity, which is growing by the day.
So why all the changes?
Well for starters, not everything has changed – I’m still here as chief tea boy, and so is Louise, in between her holidays… but on a serious note, the wonderful world of property auctions is changing – and for the better. Firstly, they are growing and becoming a much more popular platform to both buy and sell property and, even more excitingly, the traditional auction audience is evolving.
Seven years ago as a fresh faced 22 year old, I bought my first property from an auction in London; something that was seen as quite a brave move at the time. Granted, I had the benefit of auction experience under my belt, but I never understood what all the worry and fuss was about really, and I still don’t.
Back then the phone would ring regularly with excited callers desperate to view our latest instruction. They would enquire eagerly about a particular property whilst stressing that it was just what they want and that they’d got everything in place to buy it immediately… and then they’d discover it was being sold ‘by auction’. The mood would instantly change and, as quick as they can say: “I can’t buy from auction” / “I’m not interested in auctions”/ “I don’t like auctions”, they’d gone. I can’t tell you how many times I’ve had that response.
Back then, it was a really hard nut to crack to try and convince somebody that actually, auction probably was for them and in fact, in a lot of cases, could be more beneficial than buying off an Estate Agent. So let’s just break it down:
A potential buyer calls up. They have nothing to sell and their mortgage is in place (in principle). Then they discover it’s an auction property and they’re not interested. Why? From experience and in general the real answer to this is because of their perception of how the auction works, or a fear of the unknown.
Picture your dream home, that property which ticks all your boxes and is exactly what you’re looking for at the moment. If you saw it For Sale on Rightmove as: ‘1 Smith Street’ being sold by ‘Joe Blogs Estate Agents’ you’d be interested, right? Obviously – it’s your dream home. Now imagine if that exact same property was on Rightmove as ‘1 Smith Street’ being sold by ‘Joe Blogs Auctions’ instead.
Would you still be interested?
It is the same property. What you’re buying hasn’t changed; the end vision is still the same; it’s still around the corner from your Mum & Dad’s; it’s still in the catchment area for the school that you want your kids to go, and you can still stagger back from that boozer you like…etc.
You would still view the property like you would if it was being sold by an Estate Agent. You’d still go back again with your Dad, Wife, Best Friend or Builder for a second opinion – like you would with an Estate Agent. You’d still apply for a mortgage and instruct a solicitor and do everything else that you would with an Estate Agent. The bricks and mortar is the same and therefore the due-diligence on it is too. It’s just done in a different order.
Don’t get me wrong, I’m not saying that everyone should only buy from auction. If you see that dream house of yours on the market with an Estate Agent, then go and buy it, obviously. But equally, if you see that property and it’s being sold By Auction, don’t rule it out.
So going back to why all the changes here at Edward Mellor? Well I’m pleased to say that more and more people are considering auctions for both buying and selling property these days and as such, we are moving with the times to ensure that we are always there to guide you with that process. As always, if you would like any help whatsoever with buying a property from auction, be it as an investment or to live in, then get in touch with me.
Andy
@AndyT___ / 07530 704 234
You May Also Enjoy
Letting Agency Owners: Are You the Bottleneck in Your Business?
Latest developments in Renters’ Rights Bill: What landlords need to know
What Will Commonhold Mean for Property Managers?
Think You Know Mortgages? These 5 Myths Could Be Costing You Money
Just 17% of homes selling for more than £500k
