So many properties going to auction

[Fantafantafanta]

Correct me if I'm wrong, but I always thought that properties were cheaper if being sold via auction because the process is a lot quicker and there's less chance of gazundering or buyers pulling out. Is that the case or have I misunderstood the concept? Please enlighten me!

Not sure about everyone else but I've noticed quite a few properties being listed on the open market and then being sold via auction instead after a few months/maybe even a year of sitting on rightmove unsold, which I can only assume is because their overpriced or have something wrong with them.

I've had a nosy tonight on one of the auction sites and noticed 2 houses that have been on sale for months, both went to auction last Thursday but are still unsold. No idea what the reserve price was for either of them but looking at the bids they weren't much higher than the guide price. So my question is, why would anyone think they'd get more at auction than on the open market?

Surely the whole point is that someone gets a bargain because the process is a lot quicker...

Does anyone think they would get more at auction than via selling the traditional way? I don’t think so… surely the only reason people choose to sell via auction is hoping for a quick sale?

Auction has a lot of advantages for sellers, the successful bidder pays some of the fee, contracts are exchanged at the drop of the hammer, completion is quick, often 2-4 wks after auction. Most property & land sold at auction in my area, goes well above guide, I think the guide price is set just to generate a lot of interest. You do need to read the legal pack well, and view the property, sometimes properties are sent to auction if they have issues that render them unable to be mortgaged. Last year a property around the corner from us that was on the market for months and months, kept being reduced, went into auction and sold for more than it was on the market for. I am noticing more unsold lots now though and a property in our city that was sold via auction has been put straight back into auction (different auction house) I can only assume the subsidence issues were more serious than the buyer expected.