What makes a property suitable for auction?16.11.2016
In today’s auction world, a range of properties of all shapes, sizes and uses are suitable for traditional auction. Whilst this is true, there are certain types of property that always do very well at auction. Knowing if your property is suitable for auction is key to getting the quick, transparent sell that so many auction sellers are looking for. We’ve listed a few essential auction property characteristics to help you decide if your property is the right fit:
In need of improvement
Unlike traditional selling methods, properties that are in need of a bit of TLC tend to perform very well when it comes to auctions. Private buyers, refurbishment specialists and buy to let investors are often on the lookout for properties that lend themselves to improvement and renovation projects. These types of properties are much easier to buy and sell on the auction market rather than the traditional one and tend to go very quickly.
Like buildings needing improvement, properties with development opportunities are attractive to a range of auction buyers from private buyers looking for a project to investors looking to add value before selling on. Empty commercial properties, derelict and disused buildings, including farm outbuildings and barns all perform well if there is potential to add value to the property. These properties are often sold with the necessary permissions to carry out certain projects. Empty plots and building land are often attractive for similar reasons
Selling a tenanted property at auction is popular among buy to let landlords. Selling at auction means landlords don’t have to serve notice to tenants and are able to collect rental income right up until completion whilst buying landlords can collect rent from day one.
Versatility is a key characteristic for auction properties. Investors and owner-occupiers are often looking for properties that combine office or shop space with a residential area. These can also go to auction as tenanted properties or as vacant lots so provide numerous benefits to buyers.
A block of flats or groups of houses are often considered to be a valuable investment by property investors. However, residential properties are always in demand; auctions are a popular choice for these types of property due to the speed and transparency of the sale.
Investors are often interested in commercial properties as well as other investment types. Retail units, garages, offices and industrial sites are all well-suited for auction. They can be sold tenanted, vacant, with short leases and with leases requiring renewal.
A competitive bidding environment if often well suited to unusual properties which are unlikely to sell well on the traditional market. Windmills, piers and listed buildings all perform well at auction and add a little more excitement to the process.
As a simple, transparent and quick alternative to traditional buying and selling, property auctions are an ideal way to discover untapped potential in a huge variety of properties. Austin Gray has a wealth of experience in all sectors of the Sussex property market. If you’d like advice on buying or selling your property don’t hesitate to get in touch.