Unsold Lots at Property Auctions: Where to Buy
Property auctions are a go-to for many investors looking to add a new property to their portfolios. Yet, approximately 29% of properties listed fail to sell during the auction. These unsold lots offer distinct opportunities, as they open doors to engage with motivated sellers. In this article, we delve into why, where and how to go about purchasing one.
Why Unsold Lots Are Valuable to Property Investors
Each auction sees a number of lots that go unsold. The primary reason is that their reserve price wasn’t met. This situation often serves as a reality check for sellers who might have overestimated the market value of their property. However, the failure to sell doesn’t imply that the property is devoid of value or potential. On the contrary, these unsold properties become prime opportunities for negotiation. Given that many sellers opt for auctions due to time sensitivities, an unsuccessful sale intensifies their motivation to sell the property. Seasoned investors recognise this urgency and are adept at capitalising on it, often securing properties at negotiable, bargain prices.
Where to Find Unsold Lots at Property Auctions
The first port of call for prospective buyers is the EIG (Essential Information Group) Unsold Properties page. As the UK’s definitive database of auction properties, EIG aggregates all unsold lots, as well as their vital historic information. This treasure trove of data simplifies due diligence for potential buyers, allowing real-time access to necessary details.
Once you’ve found a property of interest, access their listing on the auction houses’ website for more information and background on the property.
N.B. Once signed in, you can also access the auction house listing directly from EIG.
Access the unsold lots for the top 10 auction houses in the UK by size:
SDL Auctions – Unsold lots
Bond Wolfe – Past auctions
McHugh & Co – Past auctions
Allsop Residential – Unsold lots
Auction House London – Unsold lots
Savills Auctions – Past auctions
Allsop Commercial – Unsold lots
Taylor James – Past auctions
Clive Emson – Unsold lots
Sutton Kersh – Past auction
How to Buy an Unsold Auction Property
Purchasing an unsold lot isn’t as complex as one might think. Start by visiting the dedicated section for unsold properties on the auction house’s website. Here, you’ll find all the necessary information, including the property’s EPC rating, council tax band, and potential rental yield. Once you’ve conducted your due diligence using EIG, the provided legal pack and listings, simply click the ‘send enquiry’ button or make a phone call, quoting the lot number, to speak to the auctioneer.
Remember, the pricing of unsold auction lots is negotiable, making it an opportune time to secure a great deal. Engaging in conversations with the auctioneer can provide valuable insights into the seller and property, which can be leveraged in your negotiation strategy.
Are There Fees Involved When Buying an Unsold Auction Property?
Yes, purchasing an unsold auction property does come with fees, similar to a standard auction purchase. However, it’s important to note that there’s some flexibility on fees post-auction, as everything becomes negotiable.
Always refer to the property listing for detailed fee information. Additionally, any supplementary fees will be outlined in the legal pack. It’s imperative to review this document thoroughly to avoid unforeseen costs.
In conclusion, unsold lots at property auctions can be the key to unlocking incredible value for investors. Whether it’s the allure of securing a property below market value or the thrill of discovering a hidden gem, these properties offer endless opportunities. And with EIG’s dedicated Unsold Lots aggregator, finding and buying your next property has never been easier.
Happy hunting! ✌️
