Unlocking the Potential of Property Auctions

Unlocking the Potential of Property Auctions: Beyond Distressed Sales

Auctions are an effective method of sale and not just for distressed properties. Understanding what can sell at auction will allow you to unlock the full potential of sale by auction.

Different methods of sale can influence both the price and speed of a property sale. While some properties are best suited for sale by private treaty, others excel in auctions.

Contrary to common belief, auctions are not solely for distressed properties. They provide an open and transparent platform where interested parties compete equally. Below are a few types of properties that are suitable for auction, which might broaden your perspective on what can be sold this way:

Tenanted Properties

Properties that have tenants in place are a prime example of where sale by auction is suitable. If you are a landlord, you will be able to sell the property as is, without having to evict your tenants. This is because there will be investors happy to snap up an income-producing property to add to their portfolio.

Case Study - Freehold Block Of Three Flats For Investment

• Guide Price: £210,000
• Sale Price: £330,000
• Uplift: 57.14%
• Bids: 122
• Link: View Property

Unmortgageable Properties

If you have an unmortgageable property, selling through auction is a good idea. Many participants in auctions are cash buyers so there is no issue with financing the cost of the purchase.

Case Study - Non-Standard Construction

• Guide Price: £400,000
• Sale Price: £405,000
• Uplift: 1.25%
• Bids: 1
• Link: View Property

Short \ Low Lease Properties

Properties with low or very short leases are often unmortgageable and come with their own complications and significant timescales. These are ideal and routinely sold via auction.

Case Study - Flat In Need Of Modernisation And Improvement

• Guide Price: £100,000
• Sale Price: £202,500
• Uplift: 102.5%
• Bids: 174
• Link: View Property

Commercial & Mixed-Use Properties

Auctions appeal to investors looking to diversify their portfolios. Commercial or mixed-use properties offer a way to balance a predominantly residential investment portfolio.

Case Study - Freehold Car Garage/mot Centre

• Guide Price: £250,000
• Sale Price: £454,500
• Uplift: 81.8%
• Bids: 114
• Link: View Property

Case Study - Freehold Property With Leased Restaurant and Three Tenanted Flats

• Guide Price: £300,000
• Sale Price: £383,000
• Uplift: 27.67%
• Bids: 20
• Link: View Property

Development Opportunities

Properties with potential for further development attract builders and developers seeking value-added opportunities. Whether it's a large house that can be divided into smaller units or a property that can be extended, auctions can spark competitive bidding.

Case Study - Former School On One Acre Site

• Guide Price: £500,000
• Sale Price: £1,274,000
• Uplift: 154.8%
• Bids: 217
• Link: View Property

Land & Agriculteral

Land parcels of any size offer endless possibilities for developers, especially in areas with a housing shortage. Well-built houses or flats on such plots can meet significant demand. In addition, agricultural land often has planning restrictions and is equally as successful as it is popular.

Case Study - Land At Swannington

• Guide Price: £17,500
• Sale Price: £140,000
• Uplift: 700%
• Bids: 199
• Link: View Property

Former Churches

Sometimes buildings such as former churches, ex-community centres and even scout huts make themselves available and are often sought out by auction buyers. These can sometimes be hard to value due to their unusual nature and often lack of any planning.

Case Study - Detached Methodist Church

• Guide Price: £325,000
• Sale Price: £479,000
• Uplift: 47.38%
• Bids: 144
• Link: View Property

Case Study - Former Methodist Church

• Guide Price: £60,000
• Sale Price: £204,000
• Uplift: 240%
• Bids: 163
• Link: View Property

Parking Spaces & Garages

Commonly overlooked are single garages, blocks of garages and parking spaces. These are often seen as ideal investment opportunities with specialist or opportunistic investors.

Case Study - X30 Garages, Randwick Park Road

• Guide Price: £130,000
• Sale Price: £229,000
• Uplift: 76.15%
• Bids: 93
• Link: View Property

Case Study - Lock up garage

• Guide Price: £20,000
• Sale Price: £45,500
• Uplift: 127.5%
• Bids: 38
• Link: View Property

Case Study - Eight Car Parking Spaces

• Guide Price: £70,000
• Sale Price: £88,000
• Uplift: 25.71%
• Bids: 27
• Link: View Property

Freeholds & Ground Rents

Freeholds & Ground Rents are an investment, and it can sometimes take time to find the right purchaser. Auction is a common way to expose and successfully sell to a dedicated freehold investment market.

Case Study - Freehold Ground Rents

• Guide Price: £1
• Sale Price: £23,960
• Uplift: 2,395,900%
• Bids: 158
• Link: View Property

Unusual & Hard to Value Properties

With no or little comparables sometimes properties need to be sold via auction to find the true market value. We have successfully sold Water Towers, Sewage Treatment Plants, Cyclo Parks, Lift Shafts, Beach Huts and many more at auction.

Case Study - Commercial Investment And Land With Potential

• Guide Price: £800,000
• Sale Price: £5,402,000
• Uplift: 575.25%
• Bids: 113
• Link: View Property

Case Study - Cyclopark

• Guide Price: £480,000
• Sale Price: £1,213,000
• Uplift: 152.71%
• Bids: 200
• Link: View Property

Case Study: - The Band Hut

• Guide Price: £15,000
• Sale Price £57,000
• Uplift: 280%
• Bids: 65
• Link: View Property

Case Study - Former Lift

• Guide Price: £20,000
• Sale Price: £31,000
• Uplift: 55%
• Bids: 12
• Link: View Property

Case Study - Former Water Tower

• Guide Price: £190,000
• Sale Price: £190,000
• Uplift: 0%
• Bids: 5
• Link: View Property

Case Study - Grade II Listed Former Mill

• Guide Price: £120,000
• Sale Price: £165,000
• Uplift: 37.5%
• Bids: 36
• Link: View Property

Whilst this is in no way an exhaustive list, it highlights some of the types of properties that can thrive at auction. With the ever-increasing rise of online auctions, selling has become even more accessible, offering 24/7 bidding and flexible auction periods.

If you have any of the property types above - think auction!