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News Item - Tips for agents selling at auction - Auction Estates

  • Tips for agents selling at auction news item

    Tips for agents selling at auction

    Known as 'Joint Auctioneers', traditional agents have the ability to enter properties into auction to ensure the best chance of a sale for their clients.

    A typical scenario is where a property has been offered for sale on a Private Treaty basis for a number of months without success, often as a result of an abortive deal, conditionality being imposed on a contract or a simple lack of demand. Ultimately, the time has come where the pro-active agent needs to offer a solution for their client to ensure the best chances of a sale.

    Joint Auctioneers will enter their clients property on the basis of the commission being split with the Auction House. This allows them to use the Auction as an additional tool in their armoury for ensuring a clients property is sold at the best price and quickly.

    Retaining control of the instruction throughout, reporting interest directly to their client and being able to use the sophisticated auction tracking software, the Joint Auctioneer is in total control of the process and can help set the reserve with their client based on accurate interest levels and pre-auction offers received.

    One of the many benefits of auction is the ability to agree deals prior to the event. This has many advantages for the client which are often overlooked:-

    • The prospective buyer isn't offered exclusivity, i.e. the property is only withdrawn from sale when contracts are exchanged.
    • This allows the agents to keep marketing, conducting viewings and considering higher offers.
    • The sophisticated auction tracking software gives real-time, up-to-date information on all parties reviewing the legal documents, invaluable for deciding whether to accept an offer or where to place the reserve.
    • Auction contracts are not conditional upon the buyer obtaining planning or funding unlike the majority of Private Treaty contracts.
    • Upon exchange of contracts, a 10% is paid with the balance typically 28 days thereafter.
    • Using the real-time software, the Joint Auctioneer can demonstrate to the client the true level of interest based on the downloads of the legal documents and pre-auction offers. 
    • Setting the reserve is therefore a more accurate process for the client based upon the interest received.  If the clients reserve is much stronger than the market is suggesting, there is the ability to withdraw from the auction and adopt a longer term solution.

    With smart phone technology becoming more sophisticated, the auction process has become the best method for securing the sale of property and why prices achieved through auction are often much higher than traditional methods (and sales achieved within a matter of weeks).

    As solicitors adopt fixed fees for producing the legal packs, there isn't the risk of incurring a large legal bill which is often the case for Private Treaty deals.

    In today's fast paced world where global events can quickly alter market confidence, auction is seen as a method that can respond quickly and ensure that deals are kept on track.  Having the ability to use an Auction House as a means to overcome the problems associated with the slower Private Treaty process is available to all residential, commercial, agricultural and specialist investment agents.

    "I've worked with a wide selection of pro-active agents across the UK who benefit from using the auction house as an additional marketing tool for their clients, ensuring quick deals are agreed at often stronger than private treaty prices"

    Paul Giles

    Director & Auctioneer

    Auction Estates

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