We’ve all watched – or at least heard of – the BBC programme Homes Under the Hammer. When property buyers head to auction to try to grab themselves a home at a bargain price.

And now, property auctions are becoming even more popular as changes in the way they work mean that first time buyers (FTB) and others who want greater security over their property purchase find it easier to take advantage of the savings available.

We work with Town & Country Property Auctions, which works across South and West Wales and nationally. Their Auctioneer Huw Jones took time out to speak to us about the changes that have taken place and what it means for property buyers across our region.

Property Auctions in the Past

Traditionally, buyers needed cash to secure a property at auction and had just 28 days to complete the sale. This put off many buyers, especially first time buyers who generally needed time to arrange for their surveys and checks, and secure a mortgage from a bank that needed all of the paperwork.

It was only buyers who had cash ready, and had the financial clout to take a risk on a bargain, that were the real buyers at auction. Other buyers opted for the security of an estate agent.

There were also problems for sellers putting their homes into auction. Sales regularly fell through as buyers sometimes pulled out once they had the survey done – despite losing their deposit – leaving the seller with the property still on their hands and waiting to secure a sale.

What’s Changed?

Today, at Town & Country Property Auctions, the completion date can be extended to 56 days, giving potential buyers the chance to have the legal pack thoroughly checked by their solicitor and for a mortgage valuer to visit the property to ensure the lender will be happy to lend. This adds far greater security, ensuring buyers have all of the information they need to make an informed choice about the condition of the property, its legal status and how much they want to bid. It also opens the property up to a far larger pool of potential buyers.

We’re also starting to market properties earlier – about six weeks ahead of the auction – giving buyers, including first time buyers, the chance to view the property and have it properly surveyed to help with their budgeting and financing.

Because of the flexibility of the option of a longer completion date, it means buyers are more informed and committed to their choices, resulting in a more definitive sales process for the seller. Once a property is sold at auction with Town & Country Property Auctions’ method, it is much more final – providing security for both the buyer and the seller.

The Appeal of Auctions

With the introduction of the longer completion time, it provides buyers with the chance to organise a mortgage or funding, so that it’s in place ready to quickly complete the sale. They can also fully understand the implications of the legal pack. As a result, auctions have become an increasingly popular way to buy and sell a property. 

This is particularly true for first time buyers, who at one point would have been nervous about the short time frame needed to complete and the financial commitment to buy.

As a result, Town & Country Property Auctions now holds an auction towards the end of each month. All of the properties coming up for auction are marketed at least six weeks in advance, with the legal packs available to potential buyers between two and six weeks ahead of the auction – giving time for surveys, mortgage valuations and legal checks.

For sellers, Town & Country Property Auctions work on a no sell/no fee basis, providing additional security that if a sale doesn’t go through the seller does not have to pay their charges. 

A Range of Properties

While some people think that all properties at auction are run down and in need of major renovation work, that’s definitely not the case. Yes, you can get some properties that have seen much better days – perhaps due to inheritance issues or family disputes – but these days you also find good properties that may just need a lick of paint and a bit of modernisation.

The appeal for many buyers is the value that many auction properties offer. For example, at Town & Country Property Auctions there are often properties auctioned that were marketed by estate agents, but for one reason or another the sale fell through and now the seller just wants to secure a quick sale so that they can move on with their plans.

It’s definitely worth keeping an eye on the property auctions to see if there’s the right property for you, that you can get for a bargain price.

About Town & Country

Town & Country Property Auctions started in 2010 and is now one of the leading property and land auction specialists in the UK. They work in partnership with estate agents, solicitors, insolvency companies and others, to auction everything from mansions and commercial properties, to land, residential homes and probate properties. They pride themselves on the transparency of their service, guiding buyers and sellers through their fast, no-fuss auction process.