The idea of buying or selling by public auction may appear complex, but it can be an easy and transparent means of doing both
It is generally recognised that if a property or piece of land is sold “under the hammer” on the auction day it has achieved the “best possible price” and this is often the reason why lots are offered on behalf of executors, trustees, powers of attorney, beneficiaries, receivers, companies, local authorities and such like, who need to show an arm’s length and transparent sale. But selling and buying at auction is open to everyone.
There are many benefits. Here are just a few:
■ Speed: the process can take as little as four weeks from instruction to exchange of contracts.
■ Chance of success: at Clive Emson we consistently achieve a success rate in excess of 80%.
High-profile marketing
Competitive bidding: our aim is to create a level playing field for everyone. Bidding in an auction room gives everyone an equal opportunity to bid. If a lot sells in the room, the seller has the knowledge that the sale has been made openly and publicly.
Auctions may, in the past, have held a reputation as a place to buy or sell problematic property. However, in today’s market this could not be further from the truth. While we do indeed sell property that is subject to either legal or structural uncertainties (one man’s junk is another man’s treasure), many of the lots sold have clean titles and are structurally sound.
So what makes a lot suitable for auction? All properties can be sold by auction, but some are more suitable than others. Houses, flats, bungalows and cottages for improvement, renovation, restoration, refurbishment and/or repair, are some of the most popular lots with buyers keen to capitalise on the potential added value. Vacant land and commercial investments also remain popular in an environment where the most profitable place to keep your money is in bricks and mortar, and not the bank.
Online auctions
Clive Emson Online Auctions is now offering buyers and sellers another alternative to the traditional ballroom auctions. As a nationwide service, buying or selling land or property online could not be simpler. Each lot will be appraised by one of our expert team who will recommend a guide price, opening bid price and reserve price to you. The reserve is the minimum figure at which you agree to sell.
One of the main benefits of selling via our online auction platform is that you, as the seller, can pick the marketing period, you tell us when you want the auction to begin and when you want it to end (up to a maximum of four weeks). When listed online, your lot will be displayed along with photographs, description, location map and link to the relevant legal documents.
Your lot will be marketed through our website, property portals such as Rightmove and Zoopla, and through a series of targeted emails. Where possible, we are able to arrange viewing times for anyone wishing to take a look around. At this point you can sit back and watch the bids come in.
Buyers can download legal documents and in many cases arrange to view properties through the online platform. When ready, interested parties can then place a bid on the property. To do so, all bidders must be anti-money laundering verified. Checks are carried out online and take a matter of minutes.
To stop a buyer placing a bid in the last second and winning, if a bid is placed in the final 5 minutes, the timer will automatically extend by 15 minutes, giving all buyers the chance to bid again.
Crucially, exchange occurs online, immediately when the timer reaches zero, provided the seller’s reserve has been met.
TRADITIONAL AUCTION
■ Freehold ground rent of landmark commercial block | The Old Steine, Brighton, BN1 1EL | Guide £750,000 – Plus | Sold in the auction room for £750,000
■ Freehold former windmill and pump house on the banks of the River Bure Clippesby Windmill & Pump House, Ashby With Oby, Near Acle, Norwich NR13 3AX |Guide £100,000+ | May 2017 Auction
ONLINE AUCTION
■ Freehold commercial investment/development opportunity | Five Wells, West Street, Grays Essex RM17 6XP | Guide price £1m-1.2m | Sold online for £1,225,000
■ Leasehold residential fire damaged flat | 70a Gilbey Road, Grimsby, North East, Lincolnshire DN31 2RN | Guide £10,000+ | Sold online for £15,250
Sam Kinloch is a partner and auctioneer at Clive Emson
■ This article appears in the latest edition of EG’s Property Auction buyer’s guide, available in newsagents from 20 May. For full and free digital access to the guide, please click here
