It’s positive news all around in the auction world. Below, Property Investor Today takes a closer look…
Bond Wolfe powers ahead with impressive September results
Bond Wolfe Auctions has reported a ‘remarkable’ result for its latest live-streamed auction, achieving a 95% success rate and selling 196 of the 207 lots offered.
It raised a total of £18,779,150, being the auctioneer’s second most successful sale in its three-year history – only beaten by the February 2020 total of over £20 million.
Chief executive Gurpreet Bassi described the sale as ‘hectic’, with over 25,000 viewing the auction live during an 11-hour sale which attracted over 2,000 registered bidders.
There was immense interest in London, the South East, Manchester and the North East. One example was for 75 Monmouth Road, Edmonton, Enfield. The three-bedroom, mid-terraced house was offered on behalf of the LPA Receiver and raised £347,500 from a guide price of £200,000-plus.
In Essex, a two-bedroom, semi-detached property at 29 Station Road, Sible Hedingham, Halstead, sold for £215,000 from a guide price of £175,000-plus.
Over in Wales, a three-bedroom, mid-terraced property at 19 Amesbury Road, Pen-Y-Lan, achieved £285,000 against a guide of £175,000-plus.
Other ‘outstanding’ results include Eadie House at 110 Langleys Road, Selly Oak, Birmingham, which was offered on behalf of The Methodist Church Birmingham Circuit and sold for £389,000 (guide price £325,000-plus), and The Cottage, The Drive, Lichfield – a three-bedroom detached property sold on behalf of The Ministry of Justice for £182,500 from a guide price of £100,000-plus.
Bassi adds: “Our national reach from our traditional Midlands heartland continues to grow and we were very pleased with the results for our clients from all parts of the UK.”
“In the run up to auction day, we had 781,403 website page views, 84,655 viewings of our 360-degree virtual tours, and 57,644 legal documents downloaded – figures that speak for themselves.”
With online auctions now regularly topping 200 lots, Bond Wolfe has announced plans to launch standalone commercial auctions in spring 2021.
Its next online auction – which is live-streamed via the website with remote bidding by proxy, telephone or internet only – takes place on Wednesday 28 October.
“Covid-19 has changed the face of property auctions forever” – claim
The coronavirus pandemic has led to a revolution in how auctions are being carried out, and will remain even after auction rooms re-open, according to Auction House London.
The auctioneer’s positive outlook comes after its September sale, which achieved an 83% success rate, having listed 107 lots for sale and raising over £22 million – the largest amount for two years.
Director and auctioneer, Andrew Binstock, comments: “Before the pandemic, bidders could only bid by phone or proxy if they couldn’t attend the sale. But the restrictions meant we had to open proceedings to everyone watching via our live stream feed – which has actually suited our buyers and sellers. So even when we return to room sales again, the internet process will continue in tandem.”
“To begin with, we saw livestream sales as an ideal compromise – maintaining the theatrical element of the event and allowing the auctioneer to adjust the pressure from the rostrum in real-time, to get the best results from buyers. The process is also proving less stressful for vendors. All buyers now need to be registered ahead of the day so the level of interest in a property is clear before it reaches the auction. There’s no question that buying and selling property on the internet is here to stay!”
Demand was high for a number of properties, all of which sold considerably above their reserve prices.
Highlights of the sale included a four-bedroom chalet bungalow in Pinner, Middlesex, which was guided at £600,000 and went for £702,000, and a ground-floor flat in Mill Hill which started from a guide of £180,000 before selling for £301,500 after a fierce bidding war.
Buyers showed an intense appetite to invest in property, with homes ripe for development selling well at auction. Almost six hours on the rostrum proved this for Binstock where numerous lots had a number of strong bidders competing.
He adds: “There are plenty of buyers who have embraced the current economic climate and there is a quiet confidence that investing in property is the best way forward. Investors are seizing the moment and not speculating on how the future will look in the property world.”
Auction House London is currently taking entries for its next sale which takes place on Tuesday 27 October at 12pm.
iamsold sees record summer of online sales amidst new normal
Property auctioneer iamsold has witnessed a record-breaking summer season, selling over 1,000 properties over the last three months.
During June, July and August, it completed 1,159 sales via the Modern Method of Auction (MMoA) – an 18% increase on the same time last year.
The busy period raised £162,314 million in capital value for sellers, up by 26% compared to summer 2019. The average sale price across the three months also rose by 7% on last year.
Sales achieved above their reserve price included a four-bedroom detached home in Leicester listed with Your Move which sold for £391,000 (£41,000 above the reserve price) and a three-bedroom bungalow in Solihull listed with Burchell Edwards, which sold for £291,000 (£71,000 above the reserve price).
Since the property sector reopened in May, the auctioneer has completed 1,312 sales via online auction, as sellers relied on quick and secure sales more than ever.
Managing director Jamie Cooke says while summer is traditionally a quieter time for the property market, 2020 has ‘broken the mould’ in many ways.
“We are experiencing two seasons in one with vendors who felt uncertain about moving in spring taking action now, lifestyle changes as a direct impact of Covid-19 resulting in people needing to move, and the stamp duty holiday encouraging vendors to enter the market sooner rather than later being the main contributors.”
“The Modern Method of Auction continues to give our network of over 2,500 estate agency branches an effective solution to go to their clients with when a Private Treaty sale isn’t the right fit for their needs and circumstances, which more often than not is when a quick and secure completion is needed.”
He concludes: “We expect to see more of this during the last few months of the year, supporting vendors wanting to buy or sell in time for Christmas.”
Strettons achieves best auction result since 2008
Strettons raised £16.5 million and sold 84% of the properties offered at its September sale – making it the firm’s best auction result since March 2008.
The highest price achieved was £1.15 million for a freehold vacant shop, basement and residential investment on Bethnal Green Road, London, E2.
Other notable sales include a freehold vacant office and upper parts with development potential in Clapton, E5, which went for £710,000 against a guide of £450,000-plus, and a freehold vacant shop and flat on Graham Road, Hackney, E8, which sold for £620,000 against a guide of £550,000-plus.
Several residential properties performed well on the day with numerous properties also sold prior. Tenanted leasehold residential investments were in particular demand. A first floor flat on Hesketh Road, E7, which currently produces £21,120 per annum, sold for £215,000, and a two-bedroom second floor flat on Vicarage Road E10, currently producing £10,440 per annum, sold for £212,000.
Commenting on the sale, Strettons auction director Andrew Brown says: “I am delighted that the Strettons team and I have achieved our best results since 2008. There was significant demand for many properties offered on the day and prior to the sale, which is a reflection of market sentiment at the moment, with many investors deeming this is the right time to buy.”
Lots are invited for Strettons’ next sale which takes place on Thursday 29 October 2020. The auction will be live-streamed with online, telephone and proxy bidding.
Connect UK Auctions launches ‘auction academy’ for buyers and sellers
With 2020 enhancing the use of digital technology in our everyday lives as we adapt to a ‘new norm’, Connect UK Auctions has released a series of educational auction videos tailored to buyers and sellers.
The firm says now that traditional ballroom auctions have come to a halt, a level of confidence is lost as buyers are pushed into a new method of purchase.
To combat this, it has created an ‘Auction Academy’ – a variety of videos structured to educate buyers, sellers and general property enthusiasts on all details of property auctions.
Available to all, the videos take the viewer through each auction process and provides a breakdown of all auction terminology.
Topics will include:
- What makes a property un-mortgageable?
- Can you use an estate agent when selling via auction?
- Are auction completion dates flexible?
- What is a property legal pack?
- What to look out for when viewing a property
“The stigma of property auctions, only selling repossessions, structurally damaged property or complete refurbishments, has lifted,” says chief executive officer Zad Siadatan.
“Auction companies sell a high percentage of property in excellent condition, bought by the owner-occupier as their next home. Due to the speed and security of the auction method, this percentage will only increase in the future.”
He adds: “Providing value to this client type will open up the auction market and allow the general public to get involved in this market.”