Auction sales naturally attract a diverse and eclectic range of properties, from plots of land and business units to residential homes, renovation projects, and unusual structures that would be difficult to sell through other methods. But what type of properties are most successful at auction?
Despite common misconceptions, auctions are far from reserved for homes or commercial premises that are most likely to appeal to experienced investors, buy-to-let landlords, and developers.
Increasingly, we support private and residential buyers who recognise the appeal of auctions in terms of speed, efficiency, cost, and choice.
We've collated data and statistics to showcase the top-selling types of auction properties, with insights into why demand is rapidly evolving and driving higher volumes of sellers to select an auction as their preferred sale route.
Which Properties are best suited for auction: Key Facts
- The information collated here comes from varied sources and shows a snapshot of the types of properties that sell the best in the market—either in terms of speed, success on the first listing, or sale value
- Blocks of apartments or flats and HMOs (houses of multiple occupants) represent the fastest-growing property auction subsegment, with auction sales growing over the last six years.
- Residential properties are also increasingly sold at auction, with a rise in the proportion of homes sold through an auction process.
Understanding Why Some Properties Sell Better at Auction Than Others
While we touched on the vast range of property types available to buy at auction, it’s worth clarifying that the reason so many sellers choose an auction isn’t solely down to the speed with which an auction sale is completed.
It is also because, for many, they can reach buyer audiences who would otherwise be difficult to market to. Buyers at auctions can include residential, first-time, and investment buyers, DIY enthusiasts and those looking for competitively priced properties where they can refurbish, renovate, or make their own mark.
That doesn't mean that residential homes in good condition don't sell well—far from it! However, it does indicate that most property types can potentially sell very quickly through an auction and achieve a higher price than anticipated due to competitive bidding and the wider buyer audience in attendance.
Residential Property Sales at Auction
As we’ve indicated, there are sometimes assumptions that property auctions mainly feature only commercial properties, plots of land or renovation projects, but there is a strong market for residential homes – both those in fantastic condition and those marketed as refurbishment opportunities.
Terraced homes are frequently sold via auction. The average price achieved for detached homes at auction has also increased.
Auction Sales of Commercial Premises
Business premises and commercial properties remain a feature at many auction sales, ranging from retail shopfronts to warehouses, garages, and multi-purpose units. Many are sold as commercial rental investments, perfect for landlords and developers.
Find out more about selling commercial property at auction here.
Mixed-Use Commercial and Residential Property Auction Sales
Mixed-use properties are another common auction lot and usually include shops or commercial lots with residential accommodation attached, such as a retail unit with a flat above.
These sell well due to their appeal across varied buyer demographics, such as buyers looking for an established commercial premise to trade from, with joined residential accommodation they can use as owner-occupiers, and investors who prioritise mixed-use premises within their portfolios.
Find out how much your property will sell for at auction.
Let us know the details of your property and we’ll provide you with our recommendations for the guide price and reserve price
The Performance of Land at Auction
Auctions are often regarded as the best way to achieve competitive bidding for plots of land, and lots for sale can include everything from smaller strips of land to larger, expansive plots, agricultural land, development opportunities and land adjacent to other new developments or construction sites.
Related reading: How to sell land quickly with auctions.
Success for Properties in Need of Renovation Sold at Auction
Although a larger proportion of auction lots now include residential homes and ready-to-let or move-into properties, we still see a healthy volume of renovation projects, although these are equally diverse, ranging from:
Quality structures that have good potential for appreciation or improvement in market value following interior redecoration.
Homes that are prime for an extension to expand the living space.
Properties that present a good option for reconfiguring layouts to create multiple units or converting one larger home into apartments.
Vacant homes that are in need of redevelopment or more extension renovations.
Our auction teams also manage sales of so-called 'problem properties', which are rarely difficult to sell provided that the legal packs and particulars are transparent and the lot is marketed to buyer groups most likely to be interested.
Examples include properties with issues that currently make them difficult or impossible to secure mortgage financing against, which could be due to a home with a short lease period remaining, an invasive plant species like Japanese knotweed, or those with structural issues that need to be addressed.
Selling a Rental Property With a Tenant in Situ at Auction
Tenanted properties are often perceived as very difficult to sell since a buyer will often have to respect the terms of the existing tenancy agreement and acknowledge that tenants’ rights might mean they cannot move into the property themselves or find a new tenant.
These properties can be the most exciting auction listings for landlords and investors, as they present an opportunity to expand a portfolio with guaranteed and immediate rental income.
Related Reading: How to sell a property that is currently rented.
Auction Sales of Unique and Unconventional Property Types
Finally, distinctive properties and land often come up for sale at auction, largely because the unusual nature of some properties—both residential and commercial—means they aren't as suited to the buyer audience available through alternative sales methods.
We often manage auction sales of irregular structures that generate strong interest, from renovated churches to windmills, converted barns, pubs and historical buildings, including those with protected or conservation status that attract a certain buyer demographic.
Likewise, property types that are, for any reason, harder to sell elsewhere often perform well, with garages seeing a 62% increase in sales at auction and a larger number of estates or parcels of land and buildings being sold following probate proceedings.
