Name and business title: Andy Thompson, Auction Consultant, Edward Mellor Auctions.
Where in the country does your firm cover? We operate in the North West of England.
What is property auction market conditions currently like? Very strong! We were expecting a slight dip in interest levels following the Stamp Duty changes back in April but in fact the following auction was even busier than previous. There is very high demand for properties in the North West at the moment, particularly in Greater Manchester with bidding far exceeding guide prices on a lot of the properties offered.
Why are auctions becoming such a popular method of buying and selling property? I recently wrote a blog about ‘The Changing Faces of Property Auctions’ which highlight the different types of buyers who now see auctions as a viable platform for buying property. As cheesy as it might sound, TV shows such as Homes Under the Hammer has helped raised the profile. Nowadays, there is a real mix of buyers attending our auctions.
We still have the traditional investors of old but they’re now met with a new breed of investor too; ‘Joe public’. Someone who might have some savings and getting little back from the bank - they’ve seen property programmes on the telly and fancy having ago themselves.
I am also working with a growing number of owner occupiers and even first-time buyers. There really is a good mix of buyers these days and it’s great to see. I bought my first property aged 22 from an auction and I haven’t looked back since!
How common is it to buy property at auction at below market value? It all depends on the property; there are still bargains to be had but competition is definitely high at the moment and you need to put the hours in if you’re serious about making money on a regular basis. My advice is to move with the times – too many people sit waiting for the market to change and fit their model when in reality, you need to make your model fit the market.
Why should more people consider buying or selling property at auction? Auctions are a great way to both buy and sell property. The process is slick, it’s quicker and can be much more secure than buying on the open market. Once that gavel goes down, the deal is done. There are no worries about the buyer backing out or a seller changing their mind, it’s a legally binding exchange of contracts from that point. I’m not saying that auctions are for everyone but I definitely think more people (both buyers and sellers) should consider it.
Tell us about some of the pre-sale highlights of Edward Mellor’s next auction on 8 June? We’ve got a good selection of properties scattered across the North West for our June auction.
My favourite has to be Lot 30 which is a large, three bedroom detached house in Marple Bridge. It needs modernising and is being sold with a guide of £450,000+. Once renovated it should be worth circa £650,000 so there’s money in it and Marple Bridge is a lovely spot too. With great transport links, it’s very popular with city workers looking to escape to the country after a long day in the office.
Another one that catches my eye is Lot 57 in Rusholme. This is definitely one that will attract big interest; it’s cheap for the area so would be a good buy for a First Timer looking to maximise their budget, or for a landlord and depending what it eventually sells for, there should be a profit in renovating and selling it on too.
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