Big savings to be had at auctions, but be prepared

New research by Barrows and Forrester has revealed how much UK homebuyers could save by acquiring a property at auction. On average, auction homes in Britain sell for -41% less than those on the open market. With the national average house price currently being £278,120, this represents an average saving of almost £115,000. While this saving varies from region to region, it climbs as high as 48% in Scotland while London is home to the biggest monetary saving with an £87,000 saving, the research found. James Forrester, Managing Director of Barrows and Forrester, commented: “Buying at auction is more popular now than ever before. It’s fair to say that the rise of online auctions is responsible for this, not least because it helps everyday buyers avoid the intimidating environment of the traditional auction room, surrounded by competitors who are bidding every day. However, it’s important to note that it requires more thought than your usual late-night eBay splurge and while greater accessibility is positive, it has also increased the number of buyers getting in over their heads. Just like the open market, the financial agreements you’re making at auction are very real and deal with very large sums of money. It’s vital to be prepared, have your finances in place, do your homework on the properties you’re planning to bid on, and ensure all of the important surveys and checks are completed before the hammer falls.”

Property Reporter