Auctions now part and parcel of the market here

Auctions now part and parcel of the market here

Yesterday saw the sixth Allsop Space auction take place in the Shelbourne Hotel but a year on from the first, this one was a little different.

Gone were the regular protests outside the hotel and gone was the media circus surrounding the events. Those that were there meant business and the ‘spectator sport’ element of the auction was largely left behind.

In total just under €13 million was raised from 87 sales, with 72 of those selling for above their reserve price.

When Allsop Space held its first auction here in April 2011 it was criticised in some quarters for selling distressed properties.

However, that trend is slowly changing as property auctions become part and part of the current market.

Take the example of the barber who was quite willing to take a haircut for example.

Derek Carberry of Killester Barbers was at yesterday’s auction sweating over the outcome of the sale of the lowest priced reserve for a house in the auction.

Derek Carberry was delighted with his sale yesterday

He had his house in Cavan listed at ‘no more than €15,000’, having turned down a bid of €30,000 for it in the run up to the event.

The cheapest units to ever make it into the auction book have so far been private sellers and this one was the cheapest to start off under the hammer (last auction there was a house in Leitrim that listed at €7,500 but it was pulled out of the auction). It eventually went for €39,000 just over 2.5 times the minimum reserve.

Even at this price it was a good deal. The property is sitting on 3/4 an acre of land, fully serviced, with a fully up to date interior. Even if you were able to get the land for free the actual materials that would go into making Lot 42 (we’ll strip out labour costs as well) would cost you more than €39,000.

Derek bought the property several years ago for €68k and put a further €20k into it. He was circumspect about taking a haircut after it sold saying that he ‘bought it as a holiday home that they didn’t use much’ and that ‘he was going to buy another house instead in Dublin’.

He might have taken a bit of a hit but then again, a lot of people selling through traditional means are taking a hit there too.

Auctions are certainly becoming an alternative means to sell property in the current climate. Several auctioneers had properties go under the hammer on Wednesday with €2.8 million raised from five separate events.

In recent months we have also seen an increase in the number of property auctions around the country in venues such as Galway, Roscommon and Wexford. Indeed, you don’t have to wait long for more homes to go under the hammer.

On the 22nd of this month, Merlin Property will hold their second auction in the Radisson Blu Hotel in Golden Lane in Dublin in conjunction with Murphy Mullan.

The event is a follow-up to their first auction last November, which featured in an RTÉ documentary called Reality Bites. That programme proved arguably more successful than the auction and it shows the appetite for such events that Merlin are reported to be in talks about doing a follow-up documentary for their auction in a few weeks’ time.

With Allsop set to return with another catalogue for their next auction on July 6th, there will be plenty of hammers dropped in the next few months.

With that in mind we’d like to know your thoughts on the process:

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There are 7 comments for this article
  1. maria martin at 5:02 pm

    I don’t think Dublin prices have hit the floor yet. There are certain vested interests who would like us to think that but don’t forget, there are at least two more horendous budgets on the way and if the Treaty is passed, its austerity forevermore…bound to drive prices down further in my opinion….what do you think?

  2. Don at 3:29 pm

    Hi I would also be interested to see who pays the auctioneers . Usually the seller takes this hit but in modern Ireland who knows can someone come back to us from the auctioneers groups

    Thks

    Don

  3. Andy at 3:10 pm

    who were diligent

    Should read Not diligent.

  4. Andy at 3:08 pm

    My only concern when buying any property at auction today be it house or commercial would be the danger that it may have been repossesed by force by the lender.

    The above may appear stupid to some people however I am not interested in giving any comfort to lenders who were diligent in their lending and are now causing serious stress on your couples and families.

    The same applies where commercial property is concerned, there are a lot small companies struggling under a mountain of debt due to the collapsed market.

    I sincerely doubt that banks are actually working with the people to help ride this storm because they are in turbulent waters themselves.

  5. Briege Murray at 2:24 pm

    I cannot understand why estate agents in Dublin in particular are not holding auctions on their premises and in this way the vendor (who is about the best person to sell their own home as they know all about it and the area, schools, shops etc) could have either an open viewing or viewing by appointment with the proposed purchasers and who would then proceed to auction on the chosen date. They would also be aware that the reserve would be XXXXXX so offers above that figure would be considered.

  6. gary at 1:23 pm

    how much do the auctioneers take from the sale % wise, and doe’s the buyer have to pay anything besides the price of the property they buy. do you have to pay and how much as a seller does it cost to put it in.

  7. J Reynolds at 1:02 pm

    There seems to be a feeling that Dublin properties
    (houses) have certainly hit the floor and may even
    be showing price increases particulary houses that
    are in good condition or recently refurbished.

    Jim

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