Transforming a Collapsed Sale into a Record-Breaking Auction Success
In April 2024, the sale of 125 Station Road encountered a significant setback. After months of marketing and conveyancing, the buyer attempted to reduce the agreed sale price from £350,000 to £150,000. This unexpected and dramatic renegotiation left the seller in a difficult position, requiring a solution that could deliver certainty and a fair market value quickly.
The Challenge
Recognising the potential of auction to resolve this situation, our partner agent Curchods recommended that their client explore this route. Understanding the transparency and efficiency of the auction process, the client chose to proceed and enlisted First for Auctions to handle the sale.
The Process
After a thorough evaluation, the property was listed in the May 2024 auction catalogue:
- Guide Price: £230,000
- Reserve Price: £250,000
This strategy aimed to attract competitive interest while ensuring the seller would achieve a minimum acceptable price. The property was marketed intensively in the lead-up to the auction, leveraging the broad reach and trusted reputation of First for Auctions.
The Outcome
The auction was a resounding success, exceeding all expectations:
- Total Bids: 173
- Active Bidders: 8
- Final Sale Price: £401,000
The intense competition resulted in a sale price over £150,000 above the guide price and more than £50,000 higher than the original agreed offer. Contracts were exchanged just four weeks after the property was listed for auction, with completion scheduled 30 working days later.
Key Results
- Seller Confidence: The auction provided the seller with a clear, transparent process, restoring confidence after the initial sale collapse.
- Partner Agent Satisfaction: Our partner agent, Curchods, was able to deliver an exceptional outcome for their client, reinforcing their reputation for service excellence.
- Market-Leading Outcome: Achieving a 73% increase over the reserve price highlighted the effectiveness of auctions in unlocking a property’s full potential.
Conclusion
This case underscores the transformative power of the auction process in B2B property sales. First for Auctions provided a solution that not only addressed the challenges of a failed sale but also delivered a record-breaking result. The collaboration between First for Auctions, Curchods, and the seller turned a difficult situation into an outstanding success, exemplifying the value of partnerships and innovative sales strategies.
Interested in exploring how auctions can drive exceptional outcomes for your clients? Contact First for Auctions today to discuss how we can help.
