Why there’s never been a better time to start a property auction business

Sep 3 2008 by Tony McDonough, Liverpool Daily Post

THAT bible of property auction statistics, the Essential Information Group, recently released figures stating that the number of properties on offer at UK auctions had risen by almost 300% over the last three years.

Statistics like this prove auctions are becoming more and more popular, thanks to the ever-changing housing market.

They now attract private investors, first-time home- buyers, STRs (selling to rent), developers looking to sell new-build schemes and also those buying on behalf of their older children s the student term approaches.

Brickamortoise in both the commercial and residential market (properties that have sat for a long time and gone stale without the seller re- ducing the price) is now inc- reasingly fading because of the credit crunch and the opportunities presented by auctions. There are now more quality properties on the auction market at a knockdown price than ever before.

The result of all of this is that the auction room is now perceived less as a room full of bottom feeders or dregs of the market going cheap, but rather characterised by the likes of repossessed property in very good condition.

Yes, auctions are now full of “Northern Rock climbers”, that grossly under-estimated the number of people who can get a mortgage.

Talking of repossessions, they now make up over 20% of the properties going under the hammer in the UK. However, if you have ever set foot inside an auction room, you will know that many people are there not just to bag a repossession, they are there as they have chosen to sell their properties.

And they also know that you don’t get “tyre kickers” in auction rooms – people who are not serious about buying and just wants to waste an agent’s time.

Ultimately, there is more opportunity now to start an auctions business than ever because of the popularity of auctions.