Summertime in the auction room has, traditionally been quieter than other months – but the growth in online auctions is bringing a whole new audience to all types of auctions. Buyers (and dreamers) are now happy to attend an auction anytime, if it is offering something they fancy…or, indeed, settle down on their sunlounger beside a Mediterranean pool with their iPad or phone. And spend!
Justin Beckwith at Pattinson Auctions said that their auctions this summer have brought some amazing success, “One event in particular generated in excess of £10 million worth of property, an impressive 87 per cent success rate too. In addition, our online auctions have been thriving throughout the summer months I believe this is due to people being able to bid on the Internet and via telephone whilst on holiday – demonstrating the flexibility online auction offers.
One event generated in excess of £10 million worth of property, an impressive 87 per cent success rate too. Our online auctions have also been thriving throughout the summer. Justin Beckwith, Pattinson.
Iamsold reports that July was its record month for instructions bringing over 750 new properties to the market. Jamie Cooke, Managing Director, says, “We have always focused on a blended strategy, which includes physical and online methods of auction. Across all of our auction offerings, the summer months have been extremely busy and we have seen a 19 per cent increase in instructions to auction compared to the same period last year.
We remain confident in the property market and are focused on increasing our share of the overall property transaction market, mainly through MMoA. Jamie Cooke. Iamsold.
“Despite the turbulent conditions, Iamsold bucked the trend as we saw a 12 per cent increase in the sales from last year’s summer period, which is testament to the growth of our business and the teams hard work.”
At SDL Auctions, National Sales Director Jason Lee was also highly positive, “The whole of our department has had a great summer – we have seen new and different stock making it into our auction rooms and online auctions from ‘fresh’ vendors looking for speed and security in their sale process.
Our sales levels have increased and our white labelled partner agent offering has grown by 60% year on year which, ultimately, boosts our partners’ businesses too. Jason Lee, SDL Auction.
At Mybid4it, Charlie Lanchester added that, “Auction lots have been lower over the last couple of months, and we know the holiday season has this effect on the market. What is promising though, is that the percentage of overall property Lots sold remained strong between June – August, holding at 72.1%, only 0.3% down on this time last year.”
Building the teams
Despite the rigours of Brexit there remains a magnetic attraction to auction houses. SDL Auctions have had the largest year of growth ever, in sales, partnerships and staffing, “We still offer the hands-on approach to all our customers, believing in the personal touch, revolutionising the customers experience of property services.”
Meanwhile, Justin Beckwith at Pattinson reports a 43 per cent improvement in the first half of this year compared to 2018. “We have recently introduced another five business development managers, moving us into new areas and expanding on existing areas. We have pushed right down on the south coast covering Southampton and Cornwall and surrounding areas as well as moving north into Scotland.” They too plan to strengthen their internal team with 10 (or more!) auction co-ordinators.
It’s also a very exciting time for Iamsold – Jamie reports double-digit growth across new instructions and sales. “With a recruitment drive and are continuing to hire new team members across most departments to support our network growth – our headcount now stands at 185.”
Charlie Lanchester at MyBid4it’s Yorkshire base says that have recently expanded into London, Wales, Nottinghamshire and Greater Manchester with new Partner Estate Agents onboard and increased capacity by bringing in new Account Managers.
Bring on the agency partners!
Pattinson reports a 43% improvement so far this year – due to “more existing agents really getting the hang of auctions and how it benefits them and their clients, but also the addition of new agents. Changes to our internal structure and procedures have made a huge impact and benefited the conversion of referrals from agents to listing.”
Some of Iamsold’s longstanding agent partners are listing over 15 per cent of their stock on their auction platforms. They see the value of being able to offer their clients numerous solutions to sell their properties, and SDL Auctions’ partner agent offering reports new agencies joining on a weekly basis.
Mybid4it’s Charlie Lanchester it is early days for myBid4it, but they are starting to see an increase in properties coming to market through new Partner Agents.
Auction House has sold 2,256 lots so far this year – 4.6% up on the same period of 2018, with a success rate of 76.9%, raising a total of over £264m (£264,125,659). Bryan Baxter said that the figures prove that “Despite media reports of problems in the property market, Auction House continues to buck the trend.”
Despite media reports of problems in the property market, Auction House continues to buck the trend, with a success rate of 76.9%, raising over £264m. Bryan Baxter, Auction House.
Iamsold reports summer listings of 1,919 lots, resulting in a 12 per cent uptick in sales from the same period last year. “Vendors are benefiting from us offering various auction methods that suit their needs, which is reflected in the number of instructions received over the summer, with the best performing property (In Huddersfield) achieving 160k above reserve, achieving 660k for the seller. For the total period (June – August) £3.3m in excess of reserve was achieved for clients.
Pattinson’s lots ranged from as little as £4000 to nearly £2 million, with their latest auction event and 87% success rate and over £10 million worth of property sold – one live event generated in £14 million of the property sold.
SDL Auctions increased their sales to levels “not seen in the four years that we have been running as SDL Auctions. Our white labelled partner agent offering has grown by 60% year on year which ultimately boosts our partners too.”
WHAT LIES AHEAD?
“We are approaching historically the strongest period of the year for us as we support our agent network in helping people sell their homes in the run up to Christmas. We remain confident in the property market and are focused on increasing our share of the overall property transaction market, predominantly through MMoA (Modern Method of Auction).”
“The market is challenging but some companies are doing well by going that one step further for their clients, looking at solutions to the issues – private treaty is one way of selling but does not suit everyone, if you look at the Estate Agency Act 1979 it states that all routes to sale must be offered to the seller – auction is just one of those routes and is helping in this market.”
“Upcoming taxation changes are driving many investors to sell their rental properties. Those with Buy-to-Let mortgages really should sell with tenants still in situ – that way, mortgage repayments can continue to be made from the rent received. There are still large-scale landlords buying such stock, and plenty of refurbishment specialists who would acquire and carry out improvement programmes.
“But overall, we would like to reassure sellers that the auctions market is still busy and delivering strong results. The stock being offered is very diverse, and with the higher number of lots we are now listing, buyer opportunities are greater than ever before.”
Charlie Lanchester said, “I see the online auction market continuing to grow, as it is being seen by more and more sellers as a sales tool not only for properties in need of work, as Auctions has been traditionally associated with. It is now a method seen to produce faster, more secure sales and the best possible price.”
Justin Beckwith added, “You hear in the press that the number of agents valuations are down – I cannot say I haven’t heard this from some agents but in the main agents have really grasped the product we offer, using the great marketing message of 0% fees, pushing this out to all of their potential customers. This is seeing huge influx in the number of referrals we are receiving from agents with clients that would like to try the product.”
Altogether, a very positive response from a major sector of the property market – long may that continue.