New data produced exclusively for EG by Essential Information Group shows that the proportion of stock withdrawn prior to auction is down so far this year compared to 2017.
However, the data going back to 2000 shows that the proportion of stock being withdrawn prior remains significantly up looking at the period as a whole.
Figures for 2018 cover sales data confirmed by auctioneers up to the end of October.
Withdrawals of stock prior to a sale happen for a wide range of reasons. They can be an indication of hesitancy in the market as they can be triggered by a lack of buyer interest during pre-auction marketing.
Failure to sell at auction can affect the prospects of that property in the future (as well as denting the auctioneer’s success rate), “limiting the bargaining power of the seller” in the words of one auctioneer. Therefore, offering the client the option to withdraw a lot is an essential tool in the auctioneer’s armoury.
Other factors leading to a decision to withdraw may include legal issues that emerge after the lot is listed in the catalogue and which need to be resolved prior to sale, reasons personal to the seller or a decision to negotiate with a single party.
When the data is split between London and the regions, it shows the proportion of London lots withdrawn prior has increased this year compared to 2017; while the reverse is true outside London.
This picture is repeated looking at residential and commercial lots separately, with the sharpest improvement seen in commercial lots outside London.
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