Howkins & Harrison formed back in 1888 initially as an auction house with a strong footing in rural markets. Although transitioning from sheep and cows to land and property, the outcome of the auction is the same and remains unchanged from over a century ago. The premise of when the hammer falls, the item is SOLD.
Moving online
What has changed is how we provide access to the auction lots. Until recently, lots would be saved up and auctioned at set dates, in specific locations throughout the year and the region. In the past couple of years as we have all become more attached to a life online. Its time saving benefits and immediate results, our appetite to wait for an auction event has decreased.
However, the desire to find that perfect piece of land or property to snap up at auction remains intact and the attraction of the clear-cut sales process of auction slashing conveyancing time, has become more and more alluring. Bringing together technology and property auctions into one place has provided us an opportunity to create an online auction platform, that can run in real time, one lot at a time, reducing all the negatives of an in-person event whilst retaining all the positive elements.
Where is the attraction?
Land, damaged or dilapidated property works particularly well at auction. The seller can build interest and generate more bidders and the bargain hunter can still sniff out a gem, ripe for profit. Our online auction platform engages learnings and elements from the in person auctions of the biggest auction houses in the land, supported by robust anti money laundering and legal processes as well as the technological advances of online sales platforms such as eBay to drive interest and, in turn, price.
How it works
In eBay style, our online auction platform allows visitors to see how many people are watching the lot, to see bids as they are added and to set limits ad alerts. It also removes any doubt as to the legitimacy of bids ‘off the wall’ that may happen in the in person auction room should the auctioneer feel a price needs to be bumped up. Auctions are launched with a set end point and a timer ticking down the time left and at the end of the time, if a bid is added, a further set amount of time is given for any other bidders to jump on and respond, removing the opportunity for tech bots to manage auctions on behalf of visitors and add the smallest layer to the top bid in the dying moments of the set time.
The kind of lots we find are the most suited to auction are parcels of land, pony paddocks, project houses or property with opportunity for increased value. It is not suited to £1million plus country properties – but luckily, we have a sales department who are experts in this market. We also see significant activity and interest in property that needs renovation, has planning permission or a development site – anything that is likely to attract competition and is a straightforward sale. What is important is that the lot has a clean title without issues, for example, to do with access or if the boundaries are not clear, as there is no opportunity to get a solicitor to ask questions or send enquires. Of course, to anyone who has been through the sales process and round after round of enquires, this is a most attractive proposition!
Online auction case study – Maxstoke Reservoir
We had entered a pre planning application and had a positive response from the council. With the development potential, the plot justified a guide price of £125-£150k. Bidding started in the online auction at £112,500 and increased over the length of the auction to £181k. The auction was live for a four-week period with a complete contract pack and we ran two block viewings on site. Seven bidders registered bids and the resultant sale netted more than £30k over the initial guide price.
Talk to us about auctions!
If you are considering selling via online auction, but require further advice, contact Anna Meynell on 01530 877977 or anna.meynell@howkinsandharrison.co.uk.
Felicity joined the marketing team for Howkins & Harrison to drive forward the social media and digital presence of the business following roles within both residential sales & lettings. Felicity joined Howkins & Harrison in the Rugby Letting department in January 2017 as Property Manager for the managed portfolio. Felicity is passionate about sharing the services of the H&H team and providing support to clients in the marketing of the land & property.
