Wealthy American sellers turn to property auctions

Wealthy American sellers turn to property auctions

An increasing number of owners of American property are turning to auctions to sell their properties as the US economy shows continuing signs of weakening.

Many sellers, especially those at the top end of the market, are using auctions, and other creative sale methods to dispose of property which has been on the market for years. And the auctions could be a great way to pick up a bargain property, as many are being sold for 50% of their original price.

Traditionally property auctions were a way to get rid of property that had to be sold as a result of repair issues or financial foreclosures; however they are increasingly being seen as a viable option for a speedy sale. Grand Estates Auction Co., a luxury real estate auction company with offices across North America reported that only around 12% of their current auctions are the result of financial distress.

Indeed, Alabama based property auction firm J.P King believe that it is those with larger properties that are most benefiting from the sales: “While our bread and butter are auctions for homes between $3m [£1.9] and $8m [£5.1m], calls for these mega-mansions have doubled this year,” said Caley King Newberry, a J.P. King spokeswoman. “Many didn't have to sell when they wanted to in 2008 and 2009 because they had the holding power, but now they've decided it's time to move on with their lives.” she added.

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