AUCTIONS PROVIDE a fast and efficient method of buying and selling property.
There are no dreaded chains and the property is either exchanged on the night
of the auction or within 28 days, providing great peace of mind to both the
buyer and seller alike.
Ten years ago, property auctions were synonymous with cheap, repossessed houses
and the perception of many private sellers was that their house was too good to
sell by auction. This way of thinking is changing as we join our European
colleagues and are embracing the concept of auction more readily.
Auctions have been available in the North East for a number of years. For more
than 12 years Keith Pattinson has held a monthly auction and has recently seen
an increase in the popularity amongst private/residential buyers and sellers.
Over the last two months, Keith Pattinson has offered over 280 lots for sale by
auction and following on from this growth and success, is holding two auctions
in August one; in Newcastle and - for the first time - one in Sunderland.
There are two options available to those selling by auction: conditional and
unconditional. The unconditional auction is more traditional where, on the fall
of the hammer, the buyer will exchange contracts and pay a ten per cent deposit
on the night. Both buyer and seller are legally bound.
The conditional auction is unique to the North East. When the hammer falls the
buyer will place a 1000 non-refundable deposit with the exchange of contracts
to occur within 28 days. The concept of the conditional auction was created by
Keith Pattinson, who commented: The idea was to make auctions accessible for
everyone. I was trying to devise a method of auctioning a property which
provided speed and security for both the buyer and seller, without alienating
those private buyers who required or wished to have a mortgage.
Why would you choose to sell by auction? There are three main answers to this
question: maximum price, speed and security.
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Price - Why limit yourself to a specific asking price and why sell after just
one or two viewings? The true value of your property is what someone is willing
to pay for it. To achieve this, the property is marketed with a guide price and
is advertised extensively for a designated period of time with the aim of
generating as many viewings as possible. Viewings occur in the normal manner as
with any other house sale. One main point to remember is that the property
belongs to you, the vendor, and cannot be sold for anything less than you want.
You will set a reserve price which is the minimum price you wish to accept. If
this figure or greater is achieved prior to auction, you may accept the offer
prior to the actual night of the auction. In Keith Pattinson`s auction this
year to date, in terms of achieving above the reserve price, the most
successful has been a property which sold for 75,000 above the vendors
reserve price.
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Speed - Both parties agree to exchange contracts within a certain time span
whether this be on the night of the auction or within 28 days.
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Security - A financial deposit is paid by the purchaser either as ten per cent
of the selling price in an unconditional auction or 1000 in the conditional
auction.
Everyone is aware that the housing market is changing, but this doesnt mean you
have to accept less for your house. Auctions will find the propertys true
value in todays market and give you the extra security of a deposit from your
buyer and the agreed timescale to work to. For more information regarding the
Keith Pattinson North East Property Auction, contact Richard Francis on (0191)
488 9514 or 07976 412582 or email richard.francis@pattinson.co.uk.