Property Auction

[Hrothgar]

The recent auction held in Paphos featured 34 properties of which only 7 sold (3 prior to auction, 4 on the day & 1 received no offers).

My personal view, looking at the market is that the reason for so few sales is unrealistic price expectations on the part of the vendors.

What do other people think ?.

[Nigel Howarth]

Hi Hrothgar - and welcome to the board,

Unlike Australia, where many properties are sold by action, property auctions are a new thing here. I don't know how many people went to the auction, or any details about it.

But one thing you need if you're selling something is someone to buy it. The properties may have been overpriced, maybe people didn't know about it, maybe people don't like buying property at an auction. I can't really say.

Cheers,

[Hrothgar]

Hi Nigel,

Thank you for the welcome.

I concur about Australia; in fact, it seems the norm there. In UK the auction room has been seen (wrongly in the last few years) as a place to get a bargain from a distressed seller.

The concept is new to Cyprus - this was , I believe only the second one (held simultaneously at the offices of Strettons in London), but there are plans for another next March. In the current 'flat' market - some of the auction lots were new build - I think sellers have to cover all options, be that agencies, press ads, internet marketing, private ads, auctions etc., whilst pricing their properties realistically.

People seem fixated on comparisons with the price of the new build nearby - "Mine must be worth more than that !".

The reality is that the developer can offer the buyer incentives the private vendor can't; if your property has been on the market for, say, 6 months without an offer, then you need to drop the price significantly.

It will be interesting to see if the next auction generates more interest/sales.

Good luck with the forum !.

[kade12]

Hrothgar,i have (today 23/12/2008) just read your post of the 16/11/2007.I'd like to bet the owners of the properties who did not accept the bids wish they had have done now.
I remember selling my property in the UK in July 2006 at a price friends and relations said was to cheap (i accepted the first offer made after putting it on the market)7% below the asking price.Boy am i glad i did..

[callywynne]

Anyone got any news on how recent property auctions are going?

Is anything selling?

Thanks, Cally

[Nigel Howarth]

Hi Cally

I have no news on auctions - and I haven't seen any being promoted/advertised recently. As you may appreciate, the property market is very quiet at the moment.

Regards,