Property auctions Sunderland were once the domain of deceased estates and abandoned warehouses, but it seems that struggling sellers are now turning to property auctions Bishop Auckland in a bid to sell in a difficult market. A proliferation of property auction companies now offers movers the chance to sell their homes at auctions across the UK, and this move comes on the back of recent data showing that top-end properties are struggling to attract buyers in the current market. Why is a property auction Sunderland the latest trend for struggling sellers, and what are the pros and cons of putting your home under the hammer?
Up until recently, property was a sellers’ market, with homes being purchased quickly at inflated prices. Recently, though, with taxation reforms and economic activity slowing the process, the tide has begun to shift. This is particularly the case in the capital, where prime central London values are 15% below their 2014 peak. Earlier this week, data from Rightmove found that more than a third of sellers have cut their asking prices � the highest percentage since 2012, and forecasts published by Savills earlier this month predicted that price growth in prime markets won’t fully recover until 2020.
With this in mind, a property auction Sunderland may help vendors to sell a home they are struggling to shift using traditional methods. If many buyers turn up, competition could drive up the price, and property auctions Sunderland also allow sellers to move quickly with minimal complications. There are issues to consider, though. Vendors need to think carefully about the reserve price to ensure their home is not sold for less than market value. Property auctions Bishop Auckland can also be more expensive than using an estate agent, with auctioneers usually charging a fee of a few hundred pounds, on top of commission of around 2.5% plus VAT when the property sells. A solicitor is also required to prepare the legal pack and contracts ahead of the auction day.
Buying at property auction Sunderland isn’t quite as easy as it seems on shows like Homes Under The Hammer. Buyers might get a cheaper deal and won’t need to worry about being gazumped, but if they fail to win the lot, it may prove financially costly. Before attempting to buy at property auctions Sunderland, a 10% deposit must be available to pay on the day, and the remaining funds cleared within 28 days. It’s also important to get a mortgage agreement in advance, make legal checks and, if possible, have a house survey done. All of this means a buyer could end up spending a lot of money on a property they ultimately miss out on. Even so, property auctions give each bidder a fair chance of winning their desired lot, so even with these additional costs, it is an increasingly popular way to buy a property.
There are many pros and cons to buying and selling at property auctions Bishop Auckland, and it is important that full research into the requirements of the process is undertaken before making any decisions.