In the midst of a challenging property market, the UK’s largest property auctioneer is issuing a warning about the importance of sensible pricing for properties entering the market in the second half of 2023. This cautionary message holds particular relevance for buy-to-let landlords who are considering selling at auction due to the difficulties posed by the current high-interest rate environment.

Jeremy Prior, the managing director of Auction House, highlights the dwindling number of buyers in the market, emphasizing that those who are still active are more determined, committed, and engaged than ever before. Prior advises sellers in this type of market to have two crucial factors on their side: professional advice and pragmatic pricing.

He acknowledges that the advice needed may vary depending on the location in the UK where the property is being sold. There is no universal guidance that will apply to all sellers everywhere. Additionally, pragmatic pricing is essential. Auction experts at Auction House carefully suggest guide prices for properties to accurately reflect realistic figures for the properties while also attracting the maximum number of potential bidders.

Prior clarifies that this warning is not meant to spread negativity or pessimism. On the contrary, the competitive nature of the bidding process often results in hesitant bidders becoming reluctant to withdraw, ultimately leading to higher sale prices. However, each property must be priced in a way that generates initial interest.

Despite the prevailing economic gloom, Auction House experienced a record-breaking second quarter in 2023. Sales for Q2 increased from 988 in 2022 to 1,225 this year, and the total funds raised rose from £155,322,545 to £171,864,939.

“What’s remarkable about these figures is that the property market is becoming increasingly challenging, yet our sales figures continue to rise,” says Prior. As auctioneers, they are grappling with a toxic combination of rising interest rates, decreasing confidence, and political uncertainty both domestically and internationally. Nevertheless, the belief in real estate as a secure medium to long-term investment remains strong, presenting excellent opportunities for savvy investors.

Prior concludes by noting that auctions often anticipate shifts in the housing market, whether it’s on the rise or experiencing a downturn. Private treaty sales at the moment suffer from estate agents and vendors holding onto unrealistic high prices for far too long, only to wonder why their properties are not selling.

Disillusioned customers frequently approach Auction House after experiencing deals falling through or enduring months of waiting to sell. The beauty of auctions lies in allowing the market to determine the appropriate value for a property, often resulting in a quick sale within weeks.

While a challenging property market like the current one presents fantastic buying opportunities for those with a medium or long-term outlook, Prior emphasizes the importance of seeking the right advice and ensuring accurate pricing for successful sales.