AUCTIONS
suggest the best route to be an auction. “However, many estate agents are
realising that this is an area where they need to gain more understanding because it is a growing market. It is also a real perk if they can offer this service to their clients and will help them to stand out against their competitors. There are really two main options to enter the market. The first is setting up your own auction house, which although can be done, is a massive commitment. The second is a more ‘half way house’ option. If they join an affiliate such as Network Auctions, they just need to commit some space and time to train members of staff. We will hold the auctions on their behalf in the sales room in London or Scotland.” Alan Kirkman, managing director of
Tudor Estates in Southend, is one such business who has joined Network Auctions to take advantage of what a national brand can offer. “In a nutshell, this works for us because we can offer local expertise combined with national coverage. We operate as a local auction house so we deal with our clients on a local level, valuing their property and offering local guidance. But the property will then be put into a national catalogue giving it national exposure. Our sale room is in London so all our 2012 auctions will be at the spectacular River Room, Glaziers Hall, close to London Bridge tube station. This means far greater exposure for our clients’ properties to both private and corporate investors. “I made the decision that I didn’t just
want to be another local auction house because at the moment they are really struggling to get property on their books. This has a real knock on effect because they are accepting property that is not well priced for auction or is just simply the wrong sort of property for auction. This results in having a low sales percentage, which in turn means that less people want to put their properties with them. “We don’t have the pressure of finding,
for example, eight lots to go to auction. If we only have two suitable properties, that is fine as they are joining the national catalogue. This means we can be very picky about what sort of properties we send to auction and only send the ones that are priced really well and will attract investors immediately. Around here, the average independent auction house is only achieving a 50 or low 60 per cent sales success where we are achieving 88% success because we can afford to price the properties correctly as they are going to be exposed to a wide audience. Independent
ALAN KIRKMAN
MD OF TUDOR ESTATES IN ESSEX
Being part of the network also exposes our property to corporate investors.’
more. “Being part of the network also exposes our property to corporate investors which is something that independent houses struggle with,” concludes Kirkman.
AUCTION HOUSE Auction House is a national property and land auctioneer franchise run on a license basis by Auction House UK Limited. Confidence in the auction method of sale
is growing, but there are still a large number of sellers who do not appreciate its merits or realise that their agent is duty bound to consider this alternative approach. Auction House has been set up to enable any seller and all local estate agents in the country to use this route to sell. The aim of Auction House is to provide a
Independent but with national auction coverage; Tudor Estates in Essex.
auction houses are now taking on properties that would be better off sold through an estate agent because they need to fill their books. We tell about 50 per cent of sellers that their property would be better off sold through an estate agent so we only represent the best auction house property.” Kirkman goes on to explain that in
essence it is like they are multiplying their efforts by 24 (the number of other auction houses in the group) so they can really afford to be picky giving them great sales percentage which is really all potential sellers are interested in. “If auction houses fail to sell their lots, investors soon loose interest and stop using their services,” Kirkman says. The local knowledge that Tudor Estates
has combined with national and corporate coverage offered by Network Auctions is what keeps the buyer coming back for
national network of independent auctioneers selling property under a powerful brand with high standards of service. Auction House is currently embarking
on a programme of network development, with the aim to be the fastest growing auctioneers both regionally and nationally. Colin West from Auction House
Cumbria has two salesrooms in Ulverston and Carlisle. He has been in property for 22 years, most of that time as an estate agent. The last four years he has concentrated on auctions, a role which he relishes. “It has been a breath of fresh air,” he explains. “It is very frustrating working in estate agency at the moment having to deal with all the sale fall throughs. It is a particularly frustrating market now for estate agents because we can’t service the first time buyer market because the finance is not there and they can’t get high percentage lending.” West decided to take on the Auction
Guy Charrison, lives and breathes auctions.
House franchise for Cumbria because of the strength of the brand. “The brand certainly helps us compete with London and regional auction houses,” he says. “However, because we are local, we can achieve a higher sales price for property because people trust us more as we are a long standing recognised face in this area. Also, the local market of Cumbria is far more likely to go to a local auction than travel to London or the other big auction houses in Leeds or Manchester. Not everyone trusts telephone bidding and people still like to be there in person to get a feel for the room. There has been numerous occasions when investors have bought in a London sales room but have sold it back through us and have achieved a higher sales price.”
PROPERTYdrum MAY 2012 57 THE NATIONAL FRANCHISE:
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