Internet Housing Auctions
- June 22, 2015
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June 2015 marks a new event for new build properties as homes in a new development in West London are to be sold online, in the first ever internet-only auction for new build property in the UK. The idea behind selling online is to allow investors all around the world to watch over the entire selling process evolve in front of them.
The idea and concept of online auctions appeals to developers who would usually market new build schemes to overseas investors in locations such as the Middle East and Hong Kong. This may however cause controversy in London, a city where buyers are desperate for homes to buy as news that investors from around the world could be set to get easy access to sales of even small developments is unlikely to be welcome.
The first online auction will sell the second phase of the West Drayton development, a range of one- two- and three-bedroom flats with a reserve price starting at £249,000. Bidding will open at 10am on 10 June, and would-be buyers will have 24 hours to place their bids, with the sale of the first of the 36 lots closing at 10.05am on 11 June. Sales will close throughout the day, giving those who are unsuccessful in their initial offers a chance to join the bidding on later lots. The highest bidder will be locked into the purchase.
The development, although advertised to overseas investors will not stop first-time buyers and home movers in London from purchasing at the auction as the properties were advertised on Rightmove and in the Evening Standard. The idea is that there will be a mix of buyers from London buyers and investors from abroad.
This new style of home buying is decidedly modern to have a complete online auction. Some buyers will enjoy this style of buying whereas others will still prefer the older method of going into the estate agents and making a formal offer on a property. Whatever method people prefer online auctions will not appeal to everyone although we could be seeing a real increase of them in the future.