Monday, November 12, 2007

75pc of homes fail to sell at auction

House sellers were this weekend warned not to put their houses up for auction as they are unlikely to sell because of the state of the housing market.

According to new figures obtained by the Sunday Independent, three out of four houses up for auction this year have had to be withdrawn because of lack of interest.

Now estate agents all over the country have begun warning people not to use the auction route because of lack of interest this year and the high costs involved.

Dublin estate agent Peter Wyse said yesterday: "Last year, 80 per cent of auction houses were sold at or just after auction. This year, it is the total opposite with 80 per cent of houses being withdrawn because of lack of interest. We are advising people not to use auctions right now."

Wyse said that auctions in the past worked best for individual or one-off houses, but that the slump in the property market has killed off any movement in that sector.

Putting your house up for auction can cost between €6,000 and €15,000, mainly on advertisement before the intended sale, but auctioneers have warned that spending that much does not guarantee your house will be sold.

One such case involved a house valued at over €4m on Eglinton Road in Dublin. The house failed to sell at auction and the owners were landed with a bill of over €10,000.

"We don't give any guarantee that the house will sell, we can't. What we do is make sure that the seller understands what is involved in putting the house up for auction. It's expensive and difficult and it's not worth doing right now."

The Indo

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