AUCTIONS
The fall of the gavel
Auctioning property is on the up – how can you get involved? Karen Keeman investigates.
O
ver the past few years, property auctions have enjoyed sustained growth both in absolute terms and relative to the property
market as a whole. The recession and the accompanying squeeze on household earnings have resulted in an uplift in the number of properties repossessed and homeowners looking for a quick sale to avoid entering negative equity. These contributing factors have led to some auction houses reporting 30 per cent year on year growth for the past three years. The main advantage of selling at auction
is the speed at which the transaction is progressed. The process takes about eight weeks; there are no chains. Exchange of contracts takes place as the ‘gavel falls’ and completion is usually no more than four weeks later. Like estate agencies, auction houses can be part of a large national chain, be independent or a franchise, each offering its own unique take on the market. So which way would your gavel fall?
SCHEME: NETWORK AUCTIONS Operating from sales rooms in London and Scotland, Network Auctions has recruited like-minded firms around the country with the essential local reputation, knowledge and expertise to advise clients when considering selling at auction. They explain that the comprehensive training and mentoring programme offered to partners ensures that they can pass on advice to their own clients on what properties are suitable for auction, when they should be sold, how they should be sold and what the reserve price should be.
56 MAY 2012 PROPERTYdrum THE NATIONAL AFFILIATE
Auction House uses a very large gavel to hammer home their lots!
Network Auctions believes this gives
sellers the best of both worlds. Properties for sale are marketed locally by partners as well as nationally through their own marketing. Guy Charrison is an experienced auctioneer and Chairman of The National Association of Valuers and Auctioneers (NAVA), a professional self regulating body, solely concerned with Auctioneers and Valuers. He also works as a consultant at a number of auction houses including Network Auctions. “Fifteen to twenty years ago, the roles of
an estate agent and auctioneer were very separate but over the last ten years, the roles have started to merge and estate agents are realising that they need to have a
better understanding of auction houses,” says Charrison. Research from the NAVA shows that ten
years ago the percentage of residential property sold at auction houses was 2.5 per cent; today it has increased to 4 per cent. Although small compared to the rest of the market, Charrison believes that in a tough property climate, the certainty of a sale from both vendor and buyer will increase the popularity of the auction house. “What’s more, estate agents today have
to have knowledge about auction houses and not just private treaty sales. It is a legal requirement for them to explain all sorts of sales routes to vendors but not all will have the knowledge to go on a viewing and
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