AUCTIONS
auction service that combines their local expertise and strength of brand with the benefits of national marketing and a national auction sale. The sales are held at Hatfield House in Hertfordshire. Partner agents pay a monthly fee and the
sale revenues are split between the agent and Network Auctions (who pay all the marketing and event costs) 70/30. With around 22 partners, comprising estate agents, commercial agents and RICS surveyors. The latest firms to be welcomed into the network include Campsie & Co, Horts, Grey & Co and Lane and Holmes. All partners benefit from the highly
praised auctions skills of Guy Charrison, a star performer on the auction podium; able to charm the pound notes out of the most blank-faced buyer and achieve excellent results for the partner agents. The average success rate at Network
Auctions sales is 73 per cent, with total sales now standing at over £100m. Their first three sales this year raised £9m, down on last year’s £11.3m, but the number of lots sold this year is up by 17 per cent
Financing the purchase
Banks and mortgage lenders are one thing, auction finance is another matter altogether. Auction purchases used to be predominantly cash, as lenders were rarely keen to provide mortgages up front for an ‘unknown’ purchase, but a new breed of specialist lender has emerged to help people buy quickly and securely at auction. Auction Finance’s in-house
streamlined processes ensure that funds are rapidly available – even a 24 hour payout is possible. They agree ‘in principle’ loans before, during or after an auction and funds are available in time for completion. Funding up to 80 per cent of
property valuation is common although, as each case is individually assessed, that brilliant auction bargain can mean that, in certain circumstances, up to 100 per cent funding is available with supporting security. As the preferred partner for
finance enquiries through Essential Information Group,
Chris Baguley
(EIG) Auction Finance is now a highly visible force in the market. Director, Chris Baguley says, “We’re delighted to have secured this exclusive partnership with the Essential Information Group. We both feel strongly about helping investors take advantage of the current opportunities in the market.” The firm has representatives
at auctions across the country, working with both Auction House and Network Auctions as well as with independents like Edward Mellor, Andrews and Robertson and Clive Emson. Wendy Jones, from Seel & Co,
regularly featured on the BBC’s Homes Under the Hammer, says,
“In the current market it is difficult for our buyers to access finance that can be provided within the kind of timescales demanded by auction purchases. Auction Finance is able to offer on the spot funding decisions and finance can often be in place before the bidder attends the auction!” The finance presence in the
auction encourages buyers to be bold, Kevin Gilbert at Clive Emson, says, “Auction Finance are specialists who still have a strong appetite to lend, so we are very pleased to be welcoming them to our sales.” One example shows just how
quickly they can act. “Our client was a private
landlord with a portfolio of eight properties. He was at auction to acquire another property and had made a successful bid of £81,000 for a three bedroom mid-terraced house in need of some light refurbishment. He didn’t have finance in
place to fund the purchase and upon visiting the completions
desk he discovered that he had only 14 days to arrange it. This is becoming increasingly common on properties sold as a repossession, despite the fact that mainstream mortgage lenders are often unable to work within such short timescales. “The client was concerned; he
assumed that he’d have 28 days to fund his purchase. The auction staff suggested that he visit the Auction Finance stand. “He approached our New
Business Manager who called our head office. They ran through the procedures whilst he was on the line, feeding the results back. Armed with this information our representative was then in a position to issue our client with an Auction Promise letter, agreeing his funding. The entire process took less than 10 minutes. A classic ‘win-win’ with an
extra winner – the seller sold, the buyer bought and the auctioneer got his commission!
www.auctionfinance.co.uk
Toby Limbrick
and enhancing their brand profile – a crucial difference between Network Auctions and Auction House”. Network Auctions cover the costs of
In five years’ time Network Auctions will be the market leader.’
reflecting the market sentiment for lower value lots. Director Toby Limbrick says that they
work with agents, “because our model fits naturally alongside their core business, developing their existing staff and expertise. Agents are property valuers and auctions should be a natural extension of their trade but the technical aspects and costs associated with conducting an auction are prohibitive. Within Network Auctions agents develop an auction department under their brand adding value
catalogue production, venue, auctioneer and legal administration leaving partners free to concentrate on securing instructions – it’s a low cost/risk route to market. Full training is provided (Guy Charrison also runs training courses for NAVA) together with ongoing mentoring and advertising and PR support. The future, says Toby, is bright. “In five
years’ time Network Auctions will be the market leader in estate agency auctions. Through local expertise and national coverage we offer a compelling alternative to the traditional auction establishment. Our goal is to be the auctioneer of choice for asset managers and corporate sellers. “Our strategy for growth is based on
partnership with agents, supporting them and developing their brands within Network Auctions and we are excited about our growth throughout the UK including Scotland and Northern Ireland.”
48 SEPTEMBER 2011 PROPERTYdrum
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