In the ever-evolving world of property, the journey from listing to sale can be filled with twists and turns. Many properties find success through traditional methods. However, some require a different approach to unlock their full potential. Let’s look at an example showing exactly how auctions can breathe new life into stagnant listings, benefitting both sellers and agents!
Example:
🏡 Lot 26 – 8th February Auction
📍 Newport, Gwent
This property, which needed cosmetic refurbishment, was originally listed at £125,000 by an agent for over a year, first appearing on Rightmove in October 2022. Despite two attempted sales, the first in February 2023 at £115,000, and the second at £112,000 in March 2023, both deals unfortunately fell through.
By November 2023, over a year after the original listing appeared on Rightmove, the agent was disinstructed. Recognising the need for a fresh strategy, the decision was made to switch gears and explore the auction route.
With a reserve set at £85,000, the property was re-listed for auction, and the results were remarkable. The property sold at auction on 8th February 2024 for an impressive £119,500. The auction attracted a flurry of interest, with 63 bids driving the price well beyond initial expectations. What was once a stagnant listing transformed into a success story, demonstrating the power of auctions to unlock value and drive results!
Benefits for the client:
- Speed of sale: The auction process streamlined the sale, delivering results in a fraction of the time.
- No renegotiation: With auctions, there’s no room for renegotiation or last-minute changes, providing sellers with peace of mind and certainty.
- Best prices achieved: By allowing all interested parties to bid, auctions create a competitive environment where the property can achieve its true market value.
Benefits for the agent:
- Get paid faster: Auctions expedite the sales process, allowing agents to collect their commission quickly upon successful completion.
- No fall-throughs: Unlike traditional sales, where deals can collapse at any stage, auctions minimise the risk of fall-throughs, ensuring a smoother transaction.
- No sales progression: With auctions, the responsibility for sales progression is handled by us, freeing up agents to focus on securing new listings and opportunities.
In this example, the auction not only delivered a successful outcome for the seller but also provided a valuable solution for the estate agent. By recognising when traditional methods aren’t yielding results and embracing alternative strategies like auctions, agents can better serve their clients and maximise the potential of every property.
So, the next time a listing stalls, perhaps it’s time to consider the power of the auctioneer’s gavel.
