PROPERTY auction sales are completing in record times as vendors demand increasingly quick completions, say experts.

The traditional timescale for completion on properties sold at auction is 28 days, but according to Auction Finance Limited, a company that provides finance for property professionals purchasing at auction, 14 day and seven day completion periods are becoming increasingly common.

Scott Hendry, New Business Manager at Auction Finance, says:

“We’re definitely seeing an increase in the number of properties being sold with a short completion period.  Less experienced bidders tend to shy away from these lots so there are plenty of opportunities for serious investors who have the financial backing to operate within limited timescales.  If you can act quickly, you could pick up a real bargain.”

The rise of short completions is thought to be a result of the number of distressed sales which are appearing in auction catalogues.  Many vendors are content to sacrifice some of the potential revenue from the sale of a repossessed property in return for a rapid completion.  With both the Royal Institute of Chartered Surveyors and the CML (Council of Mortgage Lenders) predicting a sharp rise in repossessions during 2008, the number of short completions in the catalogues seems set to follow suit. 

Hendry continues:

“The increase in distressed sales is certainly helping to bring investors back into the auction room, but if you intend to bid on a property that requires a quick completion you need to do your homework and make sure your finance is in place before the auction.  You should also ensure your legal representative is capable of completing in a short timescale without cutting corners.  Read the legal pack carefully so you know exactly where you stand.”