Repossession Watch - Auction Volumes
Repossessions have been increasing rapidly and this is now being reflected in auction houses.Many auctioneers are doubling or tripling the number of auctions held as they try and keep up with the number of repossessions being offered.
For example Allsops Auctioneers have already had 14 residential auctions this year offering a total of 6,124 lots compared to just 8 auctions and 2,739 lots in same period last year (EIG Group).
With hundreds of lots available auctions have become hugely competitive. Sellers need to place lower and lower guide prices and reserves to encourage interest and to guarantee a sale.
Lenders often put hundreds of properties into an individual auction and they need them to sell. So many properties have very low reserves to ensure a sale. The eventual sale may therefore not reflect either the true value of the property or the best interests of the former owner.
As repossessions continue to increase it is going to be boom time for auctioneers. With huge numbers of homes available and limited buyers, the old laws of supply and demand will force prices down even further.
So is the auction route a good option in this market? Well if you undercut the market with a low reserve you will sell. But will you maximise value? This is not a question the lenders are worried about as they try and shift high volumes of repo’s but that is another story…
If you need to sell your home there are other options that should be investigated, and this is where Quick Move Now could help.
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