Ever thought about auctions?
A couple of weeks ago I was involved in a meeting with 2 guys that wish to bring their auction business across to Hunters, re-brand and start up our very own London auction house. As a business, we have been successfully running auctions for many years, in fact our co-founder John runs a hugely successful business for York, so I think I am well placed to be able to write about it.
We met at our Old Bailey office and after a really positive meeting, it was decided to conclude matters in our local pub! So over the road we went to our great local pub, the Viaduct – a proper London “boozer” (but less about that this is a blog about Auctions not a pub review!), where the guys were giving me various stats about selling via auction. Years ago property auctions were mainly used for selling repossessions and bankrupt business portfolio’s, but not today. Yes, you still get vacant properties “in need of modernisation”, but the sales figures really do stand out. For instance, almost 90% of property placed in auction sells and when I say sells, I mean it. You may not realise, but when the auctioneers gavel hits the pedestal, that’s it property EXCHANGED with 28 days to complete. The buyer places a deposit on the day and job done!
The other stat that was interesting was that over 85% of their properties go over the guide price, most of which 30-40% over, this is massive! The reason for this is the “auction principle”, buyers react differently in an auction, there is a new type of pressure, there is a competitive air in the room and the winner here is the seller.
Selling via auction really should be considered by everyone, not just as a last resort, but as a serious option. Our London auction house will be open soon (watch this space!) and we will then be able to cover virtually the entire country.
As for the rest of the meeting… I cant remember if ~I’m honest, the fine Viaduct ale, got in the way!