Howkins & Harrison have a long and illustrious history of selling properties by auction, traditionally in a venue located near to several auction Lots that were going under the hammer that evening. The room would be packed with potential purchasers and the atmosphere would bubble until the bidding started, a process that had been successful and largely unaltered for over a 100 years! Unfortunately like so many other things in-person auctions were impacted by the Covid pandemic.
This led to H&H venturing into the world of online property auctions, a move that we were initially sceptical of as we were veering from the tried and trusted process. Our reservations were however quickly forgotten when our first online auction property went under the hammer and received 54 bids and a sold price which was an eyewatering 45% higher than the guide price.
In the first 6 months of our online auction presence, we have sold 8 properties under the virtual hammer, these properties range from pasture land to renovation projects to a former reservoir building ripe for redevelopment.
As ever, the key to a successful auction property is the guide price, this needs to be set at a level that will attract the initial interest and create a watch list of interested parties ahead of the deadline date. An example of this is with our most recent auction property, Land off Brinklow Road, Binley Coventry. The property comprised of 3.81 acres of pasture land, stables and a telecoms mast on the outskirts of Coventry. The guide price was set at £175,000 as the clock ticked down we received a total of 106 bids and an eventual sales price of a whopping £286,000. Another notable sale was 0.53 acres of land which sold at a remarkable £77,000, the vendors were over the moon as the guide price was £20,000.
All the properties sold by auction have a reserve price to protect the vendor from selling at less than they want to sell for, the reserve price should be set at the minimum they are prepared to accept not at the level they hope to achieve.
We are often asked what makes a property suitable for online auction, the answer is pretty straightforward:
Does it look like an auction property?
Are the vendors sensible in terms of guide price?
Is the title clear? Properties going under the hammer need to be legally uncomplicated without restrictions on title. The contract pack is prepared ahead of the auction to prevent any nasty surprises!
Properties that are renovation projects or have planning potential always create interest at auction.
Another common question is ‘why should I sell at auction’ if our success to date isn’t enough here are a list of reasons to help make that decision:
Best possible price for ‘niche’ properties
Buyers will compete for property that have a specific feature or quality
Unique selling points attract competitive bidders
Renovation projects sell well due to opportunity to add value
Completion is set for 28 days after the auction
Reserve price protect the vendor from selling too cheaply
Contracts are exchanged instantly – the property is sold and the purchaser is contractually bound to buy (10% deposit is paid on exchange)
No further negotiating or ‘Price chipping’ once the auction time period end
If you have a property you think might be suitable for our online auctions please give Anna Meynell a call for a confidential and no obligation discussion.
We are looking to keep building on our online auction success and have a number of properties in the pipeline over the coming months – keep an eye on our website https://howkinsandharrison.co.uk/online-auctions/
If you would like to be added to our database for up and coming auction properties please email over your requirements.
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Julia Trapp
Julia looks after all of our marketing communications, printed material, design, branding, publications, digital marketing and advertising. She has worked across a number of industries in marketing roles and outside of work, if usually found on a netball court or coaching from the side lines.
