Auctions
Auction discount
How far below an automated valuation of the same property an auction lot actually sells; a ratio MarketCode can compute because it holds both the hammer price and the valuation.
Also called: auction discount to market value, achieved to AVM, below market value auction.
Definition
Auction discount, as the data uses it
The ratio of hammer price to the valuation of the same property is the auction discount. Nationally over the last two years the median lot has cleared at about two thirds of the estimate and the large majority of lots below it, with a wide and real spread between districts. It is the one auction number no listings service can produce, because it needs the achieved price and a valuation of the same address.
Read it with two cautions. Every valuation shares one snapshot date, so for an old lot the ratio contains years of market movement as well as any discount; the response breaks it out by year and flags sufficiency. And a median over three lots is not a market rate; a minimum-lots threshold suppresses the headline where the sample is too thin.
Tools
Tools that return it
See also
Related terms
- Guide price and hammer price: The price a lot is marketed at before auction (the guide) and the price it sells for under the hammer (the achieved price); most auctioneers publish the first and few publish the second.
- Distressed asset: A property that has gone to auction more than once and never sold; on the public record, a vendor who wants out and a market that has said no.
- Automated valuation model (AVM): A statistical model that estimates a property's current value from comparable evidence without an inspection; MarketCode's is trained on registered sales joined to floor area and building form.
FAQ
Questions about auction discount
What does Auction discount mean?
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How far below an automated valuation of the same property an auction lot actually sells; a ratio MarketCode can compute because it holds both the hammer price and the valuation.
Which MarketCode tools return auction discount?
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Auction discount to valuation, Auction comparables. Each runs as an MCP tool in Claude, ChatGPT, Codex and Cursor and as a REST endpoint with an API key, at the same price.
Is achieved to AVM the same thing?
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Yes. auction discount to market value, achieved to AVM, below market value auction are other names for what this entry defines; MarketCode uses "Auction discount" in its tool descriptions and responses.
See it on a real address.
Thirty minutes, your property or area, every figure sourced.