Super-sized auctions
Buying a home at
auction is nothing new, but how about super sizing that event? Welcome to the
new world of mega auctions, which are designed to combat the ongoing credit
crunch...
Buying a property at auction has long been a staple of the property industry in countries such as Australia and New Zealand. Whilst it is now a popular way of buying and selling property here in the UK, it has never been adopted to the same extent as it has over there.
Now, as the UK struggles though the latest onslaught of the global credit crunch, buying at auction has become more and more popular as purchasers feel they can pick up a bargain and sellers keen to secure a quick sale.
Now, there is a new trend appearing. Mega auctions are now becoming more and more common. A ‘mega' auction is a mass property sell off, usually held in giant Arenas and sports stadiums and attracting thousands of people.
The super sized auctions started in America and are now moving their way around the world, as buyers and sellers look for ever more creative ways to keep property transactions moving during the credit crunch.
New Zealand has picked up on the trend and, tomorrow, Tuesday November 25th, will host one of its first mega-auctions to fight the property market slump in the country.
The US-style South Auckland House and Section Auction will take place at the TelstraClear Pacific Event Centre in Manukau, which is one of the country's biggest event centres.
The New Zealand mega auction, which is touted as the country's largest residential property auction, is being used to host the sale of 100 houses and sections.
Hundreds of buyers are expected to flock to the event, and organisers say auctioning the properties will take all day.
The 100 houses - listed by real estate agency Ray White - are thought to be worth at least £10.8 million in total. The houses are areas including Clendon, Manukau, Mangere, Alfriston, Totara Heights, Pukekohe, Papakura, Weymouth and Dannemora.
Lowest prices are expected to be about £72,148 and at least two homes could fetch more than £360,743. Three auctioneers will take turns to do the calling.
If you are thinking of buying a property at auction, heed the advice given by Tyser Greenwood Surveyors. Roger Russ, Operations Director, said, "The general advice seems to be that an Royal Institution of Chartered Surveyors Homebuyers & Valuation survey is all that is required.
"This is probably fine for many of the repossessions in the auctions, but some auction lots will be there because they can't be sold any other way due to structural problems or other issues.
"Some more serious issues may not make the property suitable for the Homebuyers type of inspection.
"Good advice would be to get an initial appraisal, along the lines of a mortgage valuation type of inspection and, if the property was potentially okay, then follow it up with a Homebuyers or Building Survey as appropriate," added Mr Russ.
Picture by ninjapoodles