Low cost property auctions set to become more popular in the UK
Property auctions could be set to become more popular in the UK with more estate agents likely to take up the model as a low cost and efficient selling method, it is claimed.
According to Network Auctions, the national auctioneering firm partnering with estate agencies, their rapid growth is evidence that the industry has woken up to the benefits of selling this way.
The Network Auctions model provides estate agencies with a low cost, low risk, own- branded auction department, utilising their existing staff without affecting their core business, said auctioneer Toby Limbrick.
He points out that the directors of Network Auctions have an estate agency background. ‘We understand the business and recognise the pressure agents are under to create new income streams, to be diverse but without racking up exorbitant costs and to want to differentiate themselves from their competition,’ he said.
‘Selling properties at auction should be a natural extension to every agent’s business, but the logistics of putting together a catalogue, hiring the venue, finding an auctioneer, marketing the event to nationally targeted buyers and producing a well conducted sale can be daunting,’ he added.
The company has a comprehensive training, mentoring and business development programme to give agents the best advice on what properties are suitable for auction, when they should be sold and what the reserve price should be.
‘We handle production of the catalogue, the administration and legal matters, marketing and conduct the auctions at our national auction room, leaving partners to get on with what they do best, sell houses,’ Limbrick explained.
Recent firms to join Network Auctions include Aspect of North West London, Forte Homes of East London, Lawsons in Suffolk and Sansome & George in Berkshire. Staff from these and other firms recently attended a training seminar run by Guy Charrison, director of Network Auctions and Vice-Chairman of NAVA. They join established partner firms holding 27 licences throughout the country who have already seen the benefits that an auction department can bring.
A recent example of such benefits was recently demonstrated at the Network Auctions December sale where partner firm, Roberts Newby of Gerrards Cross, achieved 100% success with seven lots offered for sale.
‘On the instructions of a Receiver we were asked to sell two properties by private treaty one of which became a struggle. So we suggested the auction route but they wanted to use their existing auctioneers. However, we were able to convince them to instruct us as we were part of Network Auctions which was seen to give us some real advantages over the incumbent firm,’ said Simon Colman of Roberts Newby.
‘They put their faith in us and then added a further six properties to the sale which we hadn’t even known about. We continue to develop similar business with them. The best part was selling properties that would normally have passed us by and knowing our substantial commission was secure on the fall of the gavel,’ he added.
