Auction with no sales on the night and only three bids
Friday 31st October 2008
Results from the latest auction sales are showing that purchasers continue to sit on their hands as they wait to do deals outside the room.
At Edward Mellor’s auction on October 23, just five properties sold under the hammer out of a total of 52 on offer. However, 12 properties had sold prior to the auction and a further 15 offers made on properties afterwards. Auction director Louise McDonald said: "This equates to a success rate of about 61%. However, it is true that a lot of people are sitting on their hands during the actual sale, obviously hoping to get a property afterwards at a knock-down price. But this isn't always the case. We have sold some properties afterwards at a price higher than reserve."
In Cardiff on Tuesday, things were particularly quiet at Peter Alan’s auction, where not one of the 74 lots sold and there were only three bids all told. This was despite a packed audience, with over 100 people registering as potential purchasers.
One landlord who was at the auction described it as “the most extraordinary auction I’ve ever been to”.
A spokeswoman for Peter Alan said: “Things were very quiet on the night and we have been trying to analyse why. However, after the sale seven properties were sold, a further 22 offers were made and there were 20 more expressions of interest. In other words, there was active buyer interest in around 60% of the lots.”
It was the first auction sale for Peter Alan, which has just announced the closure of two branches with the loss of some 30 jobs. It is owned by the Principality building society.
In September, 61% of residential property lots were sold, according to EIG Group which provides information about auctions. EIG is also reporting that 20% of all properties going to auction are repossessions – up 100% on a year ago.
Friday 31st October 2008
Results from the latest auction sales are showing that purchasers continue to sit on their hands as they wait to do deals outside the room.
At Edward Mellor’s auction on October 23, just five properties sold under the hammer out of a total of 52 on offer. However, 12 properties had sold prior to the auction and a further 15 offers made on properties afterwards. Auction director Louise McDonald said: "This equates to a success rate of about 61%. However, it is true that a lot of people are sitting on their hands during the actual sale, obviously hoping to get a property afterwards at a knock-down price. But this isn't always the case. We have sold some properties afterwards at a price higher than reserve."
In Cardiff on Tuesday, things were particularly quiet at Peter Alan’s auction, where not one of the 74 lots sold and there were only three bids all told. This was despite a packed audience, with over 100 people registering as potential purchasers.
One landlord who was at the auction described it as “the most extraordinary auction I’ve ever been to”.
A spokeswoman for Peter Alan said: “Things were very quiet on the night and we have been trying to analyse why. However, after the sale seven properties were sold, a further 22 offers were made and there were 20 more expressions of interest. In other words, there was active buyer interest in around 60% of the lots.”
It was the first auction sale for Peter Alan, which has just announced the closure of two branches with the loss of some 30 jobs. It is owned by the Principality building society.
In September, 61% of residential property lots were sold, according to EIG Group which provides information about auctions. EIG is also reporting that 20% of all properties going to auction are repossessions – up 100% on a year ago.
posted by tony at 2:02 PM
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