Andrew Parker, Auctioneer and Managing Director at SDL Property Auctions explains how forging equal and open partnerships can impact the property price achieved and how this ‘hybrid’ way of working could combine the best of both business models.
Selling under the hammer can often achieve the best possible price on the day and estate agents are aware of what can happen in a successful sales room. A tailored approach to picking the best method of sale is always key but now it is clear that estate agents and auctioneers can work hand-in-hand, there comes a huge amount of flexibility and collaboration.
Clients are the biggest winners
Estate agents have their own business model and the same can be said for an auction house, but new and exciting working templates are being set up. In today’s market, it is common for estate agents to partner with auctioneers – and who benefits most? The client.
It is no longer an either - or situation when it comes to choosing whether to sell with a high street estate agent or property auction provider. Instead, agents can refer properties to auction without losing the sale, giving an extra sales opportunity to customers.
Whilst it was once seen as a way to sell run-down and hard-to-sell properties, auctions are now widely relied upon by the public. They can attract a wide pool of buyers, from up and down the country.
The best professional advice
In accordance with the Estate Agency Act of 1979, estate agents and auctioneers must give the best advice to their clients. Sellers should receive the right advice according to their own specific situation and the type of property that is being sold.
Since working with estate agents, in-house research at SDL Property Auctions has revealed an increase in first-time buyers and private individuals looking for their first home. In August’s live-streamed auction, a third of the lots offered were done so with a partner agent.
This shows that by providing a specialist service – a new hybrid way of working – traditional estate agents and property auctioneers can often achieve the best price together. Flexibility, however, is key to auction and agent partner success.
Compatible aims
Recognising that a property auctioneers’ offering is different to an estate agent will always be a factor, but the final aim is the same – to achieve sales. Forming new partnerships is integral to success and in times of economic uncertainty, building new collaborations can only strengthen the property market.
Long completion times and the risk of fall throughs could be a thing of the past. Working alongside a property auctioneer will give sellers a legally-binding contract on the fall of the hammer – with a fixed completion set for the following mon.th. These simple facts are often the reason estate agents are choosing to work with property auctioneers – a transparent, successful, and combined sales process can work for all concerned.
