Reasons to sell at commercial auction
We have a network of more than 250,000 subscribers to our database to whom we promote every item sold – a far bigger network than any of our competitors. Public bodies disposing of assets can achieve the best price possible; sellers of high-value assets can access the widest pool of capital possible.
So far this year, on average a commercial lot at our auctions has sold for a price 14% higher than the reserve price. Setting the price at a level to appeal to buyers is the key and in the vast majority of cases, this price is soundly beaten.
Just as importantly, auctions offer a little-fuss option for selling compared with what can be fraught and drawn out private treaty negotiation processes.
Though an auction offers no guarantee that a lot will sell, it cuts out any lengthy haggling process. Once the gavel has fallen, the contract is in place: no chance of gazumping or backing out.
The other big advantage of going through auction is the efficiency of the transactions. No other method of transacting property secures a binding contract so easily: exchange happens immediately – with completion usually 30 days later. Buyers bid unconditionally – i.e. NOT subject to survey, finance or contract.
By being marketed to a wider range of buyers, successful disposal is overwhelmingly the norm at auction: at Allsop 90% of lots were successfully sold in 2015. From a company with a market share of 45% of the commercial auction market, that level of success is instructive on how likely it is that going to auction would reap rewards for your property.
Reasons to buy at commercial auction
Many of the lots that come up at auction are being sold by organisations that need to demonstrate they have been to a wide market and secured the best possible deal. Many lots will have realistic reserve prices, so there is every chance of getting a property at an attractive price.
With contracts completed within a month of the successful bid, auction avoids negotiation and conveyancing processes that can often take several months. Everything has to be in place beforehand when buying at auction, making it the obvious option for those who want to get access to the commercial property market.
Certainty and transparency
When a deal is done, it’s done – and legally binding. Gazumping is the scourge of many looking to buy in competitive markets. But at auction the gavel is law: if you are the top bidder when the gavel falls, the property is yours.
Variety of lots
With typically over 200 lots on offer at each of our six auctions a year, there is plenty of choice for those looking for commercial property in which to invest their savings. Properties range from offices to shops to pubs, many with big brand retail tenants. Some also have inherent development opportunities. Those considering commercial property can be assured of finding the widest variety of options at Allsop auctions.