Our online auction service, FG Auctions, saw a parcel of farmland up for sale near Banbury sell for 45 per cent above its guide price showing the strength of the sale method. We sold the 23-acre parcel off Southam Road in Mollington for £376,035 after attracting 61 separate bids.
The owner of the land, which was previously used as grazing pasture, was unsure about its value after being approached by several people interested in buying it off-market. He had received several offers, which were very mixed, and he was not sure if he was getting a good price for the land.
The owner contacted our Banbury office and was put in touch with our Head of Online Auctions, Tom Dennes, who recommended that the owner put the land up for auction instead of trying to sell it in the traditional way.
Tom said: “Putting the asset up for auction is the truest test of its actual value, and you’ll know that the buyer who really wants that asset will be prepared to pay a little more for it. This was clearly the case for our client in Mollington, who did not know if the offers he was receiving were fair.
“As he also didn’t want to choose one buyer over another for fear of upsetting people, we suggested putting it up for online auction and letting potential buyers bid for it. Once the auction began, it was clear that there were plenty of interested cash buyers who were willing to put good offers in to acquire it. After generating a lot of bids, it achieved far more than its £260,000 asking price, which was a brilliant result.”
Online auctions have increased in popularity in recent months due to their convenience and ability to produce a definitive outcome. While the traditional method of selling property through private treaty is still very popular, Tom believes online auctions are no longer being considered as a last resort. He said: “In cases like this where landowners have had parcels of land for a while that later need to be sold, it can often be prudent to consider an auction when the value of the land is difficult to estimate through private treaty.
“Buyers and vendors have told us they love the transparency of the dynamic online auction platform, with all offers visible and the certainty of a sale once the reserve price has been met. We would encourage any landowner who is unsure about the value of their land to contact us, and we can advise on the best method to achieve the highest price.”
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