Going, going, gone

Above: Cemetery Lodge

Few can resist the thrill of an auction, irrespective of what is being sold. Film and TV images, cutting back and forth from smooth-talking auctioneer with gavel poised, to contorted faces of bidders as the price goes higher and higher, make compelling viewing.
Property auctions for the ordinary person seeking to buy a house in this way, and making an immediate financial commitment usually greater than they have ever made before, can be a daunting, yet exciting, experience.
“In the past 15 years, property auctions have changed dramatically,” says David Sandeman, managing director of the Essential Information Group (EIG), provider of research on-line to buyers at auction, and analysts of the auction market.

The click of a mouse
“The majority of people attending property auctions used to be speculators, developers and builders. Cashmere overcoats or donkey jackets. But now you get middle-aged couples with university-age offspring, young marrieds, pushchairs and babies.”
The popularity of BBC1’s Homes Under The Hammer and Channel 4’s Location, Location, Location have had an enormous effect. Today, property auction information is available at the click of a mouse. EIG’s research shows that 1,627 Kent properties were offered at auction in 2006.
David continues: “Personal debt and re-possessions are on the increase. Not least as people often forget that banks are in the business of lending money, not owning property, and there has been a steep rise in those who got their sums wrong in the buy-to-let market. Both factors have significantly increased the number of houses being sold at auction.”
At auction, however, one person’s loss turns into another’s gain. “Property auctions are littered with the debris of other people’s dreams,” says TV property presenter Kirstie Allsopp.

Property auctions are littered with the debris of other people’s dreams

“Establish the maximum price you are prepared to pay long before you enter the auction room, and stick to that figure. Private house sales are like shopping in upmarket department stores: the service and presentation are excellent, but you pay for all that gift wrapping. Auctions are the equivalent of buying straight from the no-frills wholesaler.”
A highly successful land and property auction house is Clive Emson, which holds three separate auctions seven times each year covering, Kent and south east London, Surrey and Sussex, and Hampshire and the Isle of Wight. In 2006, sales from their auction catalogues raised £135 million. Kent auctions are held at The Ramada Hotel, Hollingbourne, near Maidstone, and the next auction is 13 April.
“Buying and selling houses at auction has increased by 50 per cent,” confirms chairman and auctioneer, Clive Emson. “Two years ago, we had 80 to 90 lots, now it is 130 to 150. Some 800 to 1,000 people attend each Kent auction, they appreciate it is a quick and efficient way of buying or selling their house. At auction, you know from the outset what you can afford, you can see and hear what is being offered, and the house you’ve always wanted can be yours, as soon as the auctioneer’s hammer falls.”
Successful bidders are required to pay an immediate 10 per cent deposit (or £2,000, whichever is the greater) plus the auctioneer’s administration fee. This is usually between £200 and £250. The Memorandum of Sale is prepared immediately and the buyer must sign this, and the counterpart, and exchange these with the auctioneer’s representative before leaving the auction room.
The buyer then passes their copy to their solicitor or licensed conveyancer. Completion of the sale normally takes place 28 days after exchange, unless this is varied by any special conditions of sale. Buyers have no worries about chains, ‘gazumping’ or sellers getting cold feet.
Chris Coleman-Smith, head of residential auctions at Savills, agrees:“Property auctions are a great forum, but the fundamental issue is to ensure all your finance is in place before thinking about making a bid.”

Market confidence
David Allen, auction director of Ward & Partners, based in Harrietsham near Maidstone, has been auctioning land and property for 43 years. Ward’s holds six auctions each year, also at The Ramada Hotel in Hollingbourne. Its next auction is 2 April.
“We have 46 branches in Kent and around 50 per cent of our Lots come from these offices,” says David. “At auction, our responsibility is always to achieve the best possible price for the vendor. The past two years has seen a huge increase in members of the public attending our auctions. This indicates the level of confidence people now have in the auction market.”
If attending an auction is too stressful, why not buy or sell your house from home? AuctionYourProperty.com is like a property version of Ebay. Here the seller, by paying a one-off listing fee of £49 + VAT per property, can set a date for the online auction of their home. The auction service is free.
Whether it is something different such as a former school, waterworks, church or aircraft hangar, or the popular two-bedroom terrace house in need of renovation, all of which have gone under the hammer in Kent recently, the message seems clear…get going, going, gone..!

Words by Roger Paine