Future Property Auctions: Auction has become a permanent fixture in the Scottish property market
Darryl Cormack, Group Operations Director of Future Property Auctions discusses the next 12 months for the company and the property auction sector in Scotland.
“Here at Future Auctions, we are in the enviable position of being market leader in Scotland, a position we have held for 15 years. We have an average stock level of 500-600 lots at any one time and offer the most successful auction proposition to our sellers versus the competition. Many auction houses discuss the percentage of lots sold, we don’t – we just discuss how many we sell. 70% of 5 lots listed is not impressive after all, whereas the 150 we sell on average per month is more important to recognise! The auction process provides the most secure sale for any vendor with a fall through rate of under 5%, creating an almost guaranteed sale once a deposit has been placed. Our staff have over a hundred years of experience between them in property – across letting, 2nd hand residential sales, commercial, land and auction property. This knowledge and our unique place in the market gives us the ability to value every property accurately and put our clients in the best marketing and thus selling, position. Buyers, on the other hand, receive a straightforward and easy process in purchasing from us, and I challenge anyone to have a more transparent service.
The next 12 months
Our business model provides a stable proposition – we don’t experience the peaks and troughs that most estate agents work through. This means that our stock levels have not reduced during the post covid feeding frenzy and beyond into 2024. However, the high sale prices achieved in the last four years are now coming to end in the less desirable locations, and that may have a knock-on effect. Demand has shrunk in the open market due to the cost-of-living crisis, along with unaffordable stock but we, on the flip, have seen an increase in foreign buyers and stock levels. Our registration base of bidders is not limited to the UK, and we see demand remain high in the face of a weaker pound form our foreign investors. These buyers are tired of the property sourcers and their subsequent costs and predominantly came to us direct in 2024. There was also no flood of repossessed or sequestered stock as expected after the moratorium ended in late 2023– the banks are yet to take advantage of poor consumer behaviour. Confidence would drop if this happened in late 2024 into early 2025, and we will find ourselves in a changed market again. When I started in this business in the mid 90’s, there was more consistency in the market and more stability – we might see this in 2025. The housing market simply can’t have relentless, continuous growth year on year, so a secure auction sale could be the difference between a property actually selling or being collected by a local agent. We anticipate a further increase in our market share in 2025, as more sellers take us up on this proposition, instead of open market.
SUMMARY
Our service is designed to offer a quick, secure sale – but with the caveat that the buyer will have a reason to buy under those terms. The marketplace of 2025 will give many sellers a reason to use stable sales terms with quick turnarounds, and access to buyers who are not available through traditional estate agents or property sourcers. Auction has become a permanent fixture in the Scottish property market – it is here to stay, as evidenced by our longevity. All sellers should have an auction option as either a string to their bow, or a credible, more applicable selling option for agency clients. If you have never dealt with us, or haven’t spoken to us in a while, we’d love to hear from you! If you would like more information on the entire process, go to futurepropertyauctions.co.uk.”
You can see all of the commercial property listed by Future Property Auctions on NovaLoca here.
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