I am writing this article before our summer sale but it will appear in the press after what I hope has been a successful morning at the Assembly House!
The great beauty of an auction is that none of us know quite what is going to happen but we always do our best to put the right lots up for sale and with sensible guides and reserve prices we do all we can to maximise value, which we hope will have happened this week.
It is also worth noting that there are times when it is not possible to put a value on a property and in these cases an auction sale is a very good way of finding out what something is worth on the day.
Anyway, it has been a busy period and even now after the sale we are looking forward to our September sale, as we have to, and as well as preparing for our summer auction we have been putting together lots for September. Here is an aide memoire on some of the properties that might suit an auction.
In fact anything is suitable for an auction to a certain extent but properties in need of renovation, residential and commercial investments, land, garages, ground leases, properties with structural problems, tenanted properties, unmodernised properties, farm and rural buildings in a state of disrepair and cottages and family homes all suit this method of sale. Usually there is an angle, whether it be condition or otherwise that leads us to go down the auction route, but we have sold properties that are in very good order but by virtue of their location and standing in a village or community are much sought after, with the result that an auction sale will help us maximise value.
Investment property is also often sold at an auction and historically this is certainly the case. Where property is let, there is often an income producing opportunity that an auction sale is able to capitalise on.
Residential property opportunities include let terraced houses, houses in multiple occupation and regulated tenancies and particularly in London, commercial property is often sold by auction.
The residential investment market is much more active than it has been. The main change took place in 1988 when the protected assured shorthold tenancy came into being and those with long memories will remember the days of the protected tenancies before then, when it was very difficult to let a property without being able to obtain vacant possession later on. In those days, auctions tended to deal mainly with properties that were sold subject to a protected occupancy and they still come up for sale, but there are not so many of them as there were and the level of return is not what it was. Many people look at the opportunity of capital appreciation now, which is important.
Investing in property is not for the faint hearted. Any opportunity that arises, whether it is of a residential, commercial or rural nature should be investigated thoroughly by any prospective purchaser who may wish to go to auction. The reward is there and the property is certainly a good alternative for other investment mediums, such as pensions.
As always, we are available here in the Norwich auction department at Brown & Co to deal with enquiries and help with property matters. Myself and auction manager, Trevor Blythe, would be delighted to inspect and provide advice without obligation as we lead up to the September sale with some 6 – 8 weeks until we close the book for that auction.