Auction sector expanding fast

Related tags Licensed property market Auction

Property agent claims firms have seen an 'upsurge'The auction sector of the licensed property market is expanding faster than any other, according to...

Property agent claims firms have seen an 'upsurge'

The auction sector of the licensed property market is expanding faster than any other, according to agent Bettesworths.

Firms that conduct auctions have seen an "upsurge in activity" from buyers and sellers in the last few months.According to company spokesman and auctioneer Barney Bettesworth, the reason for the "upsurge" is a change in attitudes.

Auctions were, until very recently, often considered a last resort but are now firmly established as an alternative method of sale.

More than 60 people went to the auction of the White Hart Inn in Bodmin (pictured)​ earlier this year.

Bidding was brisk and the pub was eventually sold for £126,000. "To anyone who has spent months in protracted negotiations over the sale or purchase of a property, the speed with which an auction can slice through the red tape often seems miraculous," said Mr Bettesworth.

"In one moment the ownership is transferred. No further haggling, no gazumping, no changing of minds. The deposit is paid and even if the buyer has made a ghastly mistake he is bound."

According to Mr Bettesworth, the greatest advantage of an auction to both parties is the element of certainty.

"Provided the vendor has fixed a sensible reserve and that is achieved, he knows he will receive the sale proceeds four weeks after the auction. The purchaser knows that provided he has his finance arranged, the property is his and the vendor can't change his mind," he said.

In many cases an auction is a quick sale. Contracts are often exchanged within eight weeks of instructions for sale being given to the auctioneer.

But opinion is divided over whether the price advantage of an auction lies with the buyer or the seller. Some argue that a buyer will offer more than he would be prepared to pay outside the auction room, while others say this is not the case.

Buying a property at auction can also be a nerve-racking experience. Mr Bettesworth recommends brushing up on bidding technique and making sure you are bidding for the right property.

"People have been known to purchase the wrong property because they have come in late or mistaken the lots," he said.

Another advantage of offering a pub for sale by auction is the increased possibility of getting an offer before the auction. Any potential buyer has to sign an immediate, binding contract to stop the auction going ahead.

Related stories:

Bodmin auction brings in the bids (31 October 2001)

Related topics Property law

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