Exciting and quick – first-time buyer shares insightful experience of purchasing property via auction
The UK’s property market has undoubtedly witnessed profound change over the last few years, with people increasingly attracted to the simplicity that purchasing via auction can deliver.
According to Propertymark’s latest Auctions Barometer Report, a high percentage of auctioneers surveyed (54 per cent) said the number of lots available for all property types had increased when viewed on year on year.
There are many reasons why auctioning is becoming ever more popular, especially with first-time buyers who are ‘chain free’, and this is because people are largely attached to the speed regarding any potential property purchase.
According to Propertymark’s own research, there is currently a persistently high number of housing transactions that take in excess of 17 weeks to complete. The auctioning process, however, can speed up sales because once bidding is concluded, the contract to purchase is then formed, which provides both sellers and buyers with greater peace of mind.
Furthermore, the initial guide price for many properties tends to be set at a level that encourages greater levels of engagement from the outset. Properties sold at auction often use a diverse balance of in the room bidding and online methodology.
This is certainly one reason why first-time buyer Sophie from London decided to purchase a property in Putney via an online auction that she found on an online property portal.
And to provide some insight into what it is like to buy a property via an online auction, Sophie has shared her story.
“I definitely found the properties being auctioned more affordable, though the one I purchased needed a lot of renovation,” Sophie explained.
She added: “I had gone down the estate agency route before, and I had been gazumped (where a seller accepts a higher offer from a new buyer after previously accepting an offer from someone else) twice. I saw a property that was being sold via auctioning. I did research into the auctioning route, and I thought I would give it a go.”
Sophie said that social media and research she did on the internet into the legal documents that are provided to buyers and sellers during the auctioning process had helped provide her with a lot of the information that she needed to understand it all.
Although Sophie described auctioning as ‘daunting’ at first, she added that once she became more aware of how it works, then it was just like going through the traditional estate agency route, as she got to view the property before she purchased it and ask questions which were important in her decision making process.
When it came to the online auction itself, Sophie stated how the process itself made her feel at the time.
“I found it very exciting. It was a quick process, which can be a little bit exhilarating. The day of the auction itself made me think I was going to be outbid for the property, but I got it!” Sophie stated.
Additionally, considering the auctioneer who Sophie worked with possessed NAVA Propertymark qualifications that provided her with the knowledge needed to understand the legal aspects of the auctioning process, she commented that she was ‘very happy’ to work with them because of the number of legal documents they provided her with.
Asked whether Sophie would recommend auctioning to other first-time buyers, she concluded: “Yes, I would recommend it to other first-time buyers because I think you get a fantastic outcome that is ideal for my generation. It is not daunting, as many people make it out to be, because you can state the maximum price you want to pay, and you avoid getting gazumped.”
Using a qualified auctioneer can make a huge difference to the auction process due to the training they have been provided with to understand the legal requirements for auctioning. Use Propertymark’s Find an Expert tab to discover a qualified auctioneer in your area if you want to purchase a property at an auction: Find a property agent near you | Propertymark.
