Home Property Sellers urged to avoid auctions as buyers secure discounts of up to 54%

Sellers urged to avoid auctions as buyers secure discounts of up to 54%

18th Mar 24 4:36 pm

The latest research from quick sale specialists, Open Property Group, has revealed that while the average home selling at auction is going for -43% less than price secured on the wider market, London home sellers are selling for just -6% less, while those in the North East are taking a -54% hit.

Open Property Group analysed current market data on the price secured for homes sold at auction and how this compares to the wider market.

The research shows that the average home heading to auction is selling for £172,719 across England. While the average price achieved at auction has fallen by just -1.5% in the last year, versus a drop of -2.2% across the wider market, auction homes are selling for considerably less, -43% below the average house price seen across the wider market.

The North East is where home sellers are taking the biggest hit at auction, selling for -54% below the wider market average in the current market, with the East of England also seeing homes sell at auction for a considerable discount of -51%.

In fact, the discounts currently being secured at auction are sizable across every region of England except one.

Across London, the average home sold at auction is still commanding £478,814, just -6% less than the wider regional average of £511,33.

The current average price secured at auction across the capital has increased by 2.1% in the last year, versus a decline of -4.5% seen across the wider market.

Just two other regions have seen an increase in the price secured at auction in the last year, with the North West and Yorkshire and the Humber seeing respective increases of 15.9% and 17.4%.

CEO of Open Property Group, Jason Harris-Cohen, said, “As a seller, heading to auction can be a gamble and as with any auction the price secured for your property will depend on a range of factors, but ultimately it comes down to who is bidding on the day.

The erratic nature of the auction market is clear when you look at auction house price performance in the last year. While two regions have seen sharp increases, the vast majority have also seen price reductions ranging from a -2.7% to a -16.4% drop.

As a result, the average auction buyer is securing a discount to the tune of -43% which must be a bitter pill to swallow for sellers who have chanced their arm in cooling market conditions.

For those in need of a quick sale, quick sale specialists are a much safer bet compared to auction, as we not only provide a concrete timeframe with respect to your sale completing, but price offered for your home is substantially higher than the average achieved at auction in the current market.”

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