From SDL Auctions’ continued success since March, to iamsold contributing to a major sales achievement, Property Investor Today delves into the latest auction news.
SDL Auctions ‘ahead of the curve’ during property boom
With a catalogue of 240 lots selling on average 16% above guide price at its biggest auction yet, SDL Auctions is reporting its continued success since March.
This month’s national property auction saw 53% more lots than SDL offered in September 2019. The sale – conducted from the head office auction studio – ran for nearly 12 hours, bringing the total raised for sellers during September to £26 million.
This comes at a time when the latest data from Nationwide reports that ‘pent-up demand’ has led to the highest property price growth for four years.
Managing director and auctioneer Andrew Parker comments: “The media are calling it a post-lockdown property boom, but we have experienced no decrease in appetite from buyers throughout the pandemic.”
He says, thanks to the team’s adaptability and commitment to sellers, SDL Auctions has maintained a consistent auction schedule from the beginning of lockdown.
The auction – ran by auctioneers Andrew Parker and Rory Daly – began in Derby and got off to an exciting start with the sale of 16 Bendall Green in Littleover. Requiring full renovation, the three-bedroom property sold for £106,000 from a guide of £59,000-plus.
Over in Nottingham the highlight of the show was the Grade II listed Holly Lodge in Holme Lane, close to the National Water Sports Centre in Holme Pierrepont. Bidders were drawn to the rural 19th-century property and, from a guide price of £250,000-plus, it sold for £412,000.
The highest-value lot of the day was in the North West, where a large part-tenanted, mixed-use property comprises eight commercial units and 23 apartments, producing a rental income of £143,632 per year. Close to a retail and leisure development and with good transport links into Manchester city centre, 100 Lord Street in Leigh sold for £1,270,000 from a guide price of £1,150,000-plus.
Parker adds: “It’s always satisfying to get great results for our sellers and to be part of the excitement of auction day. Although we miss seeing the familiar faces of our crowded auction rooms, we get the same buzz in the auction studio and I’m told this comes across to viewers watching the live stream.”
The success of the auction means the auctioneer has now sold more than 1,000 lots and raised over £130 million for sellers since the start of 2020.
SDL Auctions holds live-streamed national property auctions at the end of each month, and timed auctions every day. To find out more about selling a property with SDL Auctions, you can visit the website www.sdlauctions.co.uk.
Network Auctions – ‘virtual auctions are here to stay’
Network Auctions has announced its resilience in the market, selling 89% of its lots and raising £3.6 million in its October auction.
Despite growing talk of negative house prices around the corner, Network Auctions’ online sale on October 1 proved popular with bidders, with several of the lots being brought by owner-occupiers.
Auctioneer Toby Limbrick says: “Covid-19 has changed the buying and selling of properties; we are starting to see increasing numbers of owner-occupiers use auction. We are confident this sales method has shown its versatility and sustainability in these difficult market conditions.”
One highlight was a four-bedroom detached house in need of modernisation in Earley, Reading. It attracted plenty of interest with a total of 25 bids pushing the final hammer price to £443,500 against a guide of £395,000.
According to Limbrick, the lot received huge interest because it was fresh to the market. The property did not go on the private treaty market beforehand, but went straight to the virtual auction room for the seller to benefit from an efficient sale.
He adds: “2020 has turned into an incredible year for us. Our latest sale shows the continued strength of demand for property at our online auctions. So far in 2020 the success rate is 90% against £23 million-plus raised, with an increase of 84% in the number of lots sold compared to last year.”
“We know buying patterns have changed due to Covid-19 and online property auctions are well-suited to these new needs. We believe virtual auctions are here to stay.”
Network Auctions’ next online sale will take place on November 5 starting at 9am.
Southern estate agent celebrates major milestone with iamsold
Independent estate agent group Douglas Allen has sold its 100th property at auction in just 18 months since partnering with auctioneer iamsold.
The group entered the auctions realm at the beginning of 2019, offering the Modern Method of Auction (MMoA) to clients across its branches in North East London and South Essex. Since then, the group has sold 100 homes via online auction with the help of iamsold, bringing in over £500,000 in revenue.
The auction method allowed the group to safely trade and continue to sell properties during lockdown, while restrictions were placed on the property industry and traditional house sales slowed.
Now Douglas Allen is reporting strong interest in its auction services, with viewings and sales both up compared to this period last year.
Managing director Jon Holden said the partnership with iamsold armed the team with all the tools needed to help their clients sell properties using the method that’s the best fit for them.
“We were initially attracted to iamsold by the 0% commission benefit, but get so much more from the partnership. It’s more like a collaboration, and they feel like an extension of our team,” he said.
Jamie Cooke, managing director at iamsold, said: “It’s great to see how well the Douglas Allen team have incorporated auction as a solution for so many of their clients. They are in our top 10 Partner Agents for stock penetration, and their average sale price at auction is £350,000, which dispels the myth that auction is only suited to lower value properties.”
“With the rise in non-discretionary sellers and people’s willingness and confidence to do more online post-lockdown, we’re finding that MMoA has never been a more valuable solution for our agents to go to their clients with. Not only is it a secure selling method for vendors, it also offers added security for those buying property compared to Private Treaty purchases which have a higher fall through rate. Here’s to the next 100 sales for Jon and his team.”
This post has originally been featured in Property Investor Today.