The most common question that we are asked by vendors is “Under what circumstances would I sell my piece of land, home or business premises through auction rather than by private treaty disposal?” A good question. One that’s asked many times.
The object of your estate agency is to achieve the highest price possible in a given market place within a defined timescale. Where there is a perceived high demand for a particular type of property, or where value of an asset is difficult to value or the vendor requires a quick and certain sale this is where a disposal by auction comes into its own.
It is a fair and open process for the vendor and the buyer; and with those properties in high demand, avoids the less favourable practices of gazumping or a Dutch auction, gaining the vendor the best price in the market place and a sure conclusion to the sale.
Examples of typical auctionable properties are those that require renovation, sometimes building plots that are in high demand as there are so few of them, a piece of land located between two neighbours where both are interested, or indeed where the value of the property is difficult to assess because it is unique. Typically it is an asset where we identify that there will be a large demand either because of what it is or because of the sales price
First and foremost we are one of a few estate agencies within the South West who can offer auction as a solution to vendors. As a company we offer a choice of auctions, be it the public auction offering a wide variety of different assets under one roof at a given time within the year or our now established Online Auction service.
Our Online Auctions are played out on an ‘Ebay’ based platform located within our own website and is keenly sought by those vendors who do not want to wait for one of our larger auction events, as it has an immediacy whereby one can control the length and time leading up to the auction and can be held within days of being instructed.
This has the added benefit that there is no selling fee to the vendor, just an up-front cost of approx £495 plus VAT which includes the legal pack being produced. The subtle difference is that the winning bidder at the deadline pays for the right to purchase that property for a 28-day period at the price agreed at the time.
This opens up this method of auction to buyers who require mortgages as well as those who are cash buyers. This has proved extremely popular and the average price above the initial guide price achieved has been in excess of 20%. It is a great visual method for selling a home and the vendor can see the bidding and the excitement of exceeding the guide price from their armchair. In one instance a vendor was on holiday in Australia but able to view the sale of her home courtesy of the Internet!
The more traditional Public Auction also has its benefits, bringing a conclusion to a sale under one roof at one given time, and with the correct marketing and advertising, Bradleys reach buyers covering the whole of the South West region and through Move With Us, our partners, the whole of the UK, giving the greatest coverage of your property to buyers in the market place at that time.
We also differ in our approach to our Auction service to you the customer.
Ask us out for a free auction appraisal on your property or land asset and we will give you an honest answer as to whether we feel your asset is suitable for sale by auction or if is more suited to a sale by other means. There are auction houses operating who are purely after your marketing fees and not necessarily the sale commission and will therefore tell you every time that your property is suitable for auction when clearly it may not be.