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AS one of the North-East’s most trusted estate agents, Robinsons take pride in being a one-stop shop for those looking to buy or sell a property.

And, over the past three to four years, the company has seen a marked growth in the number of people opting to sell their properties by auction.

“It has become another important arm of our business because there are clearly more people who see auctions as a good way to achieve a quick sale at the right price,” says Robinsons co-director Simon Wright.

Mr Wright says auctions are a particularly good route to choose if you want a quick sale or don’t have a clear idea about a property’s worth.

“Auctions are a great way to find the right level because you are on the open market,” he explains. “If, for example, you have a particularly unusual property – perhaps a one-off – an auction can be the best way to establish the true value.”

Another advantage of selling by auction is that there is much less chance of people pulling out of a sale once they’ve committed to making a bid because they’ve already done their surveys and investigations.

Also, houses which might have major structural problems and are, therefore, not mortgageable can still be sold at auction. Another attraction is that the vendor doesn’t have to pay estate agents’ fees because the buyer pays a premium.

Robinsons are one of 1,300 estate agents in the UK to be a partner of IAM Sold, which was set up in 2009 and has swiftly grown into the biggest independent residential auction company in the UK. IAM Sold employs 120 people out of Newcastle and has more than 1,100 properties available for auction across the country at any one time. The company manages both online and physical auctions under the banner of The Great North Property Auction, with the next being staged at Ramside Hotel, near Durham, pictured below, on May 3.

The Northern Echo:

Jamie Cooke, managing director of IAM Sold, has the following advice for anyone considering selling a property by auction:

1. MAKE THE RIGHT CHOICE: Be sure to choose the right method of auction to suit your property and your circumstances. There’s the traditional method where contracts are exchanged immediately. That method tends to attract more cash buyers for swift sales but you can limit the market, there is a greater chance of an impact on price, and you have to be ready to vacate the property quickly. The other option is the “Modern Method of Auction” which allows 28 days for contracts to be exchanged and a further 28 days for completion.

2. GET REAL: Be realistic on your reserve price. For example, if you are willing to accept a minimum of £100,000 don’t make the reserve price £120,000. By making the reserve realistic at £100,000 you have more chance of stimulating the market, attracting more bidders and, hopefully, getting the best possible price.

3. KNOW WHAT’S REQUIRED: Read and understand the obligations of all parties by reading the terms and conditions carefully. What are you obligations as vendor? What is expected of the buyer? And what will be provided by your agent? With IAM Sold, care is taken to make sure all the terms and conditions are very clear and easy to understand.

Simon Wright, at Robinsons, has no doubt that auctions have an increasingly important place in the property market.

“Selling by auction can be really exciting because of the cut and thrust of seeing how much is going to be bid,” he says. “People may be familiar with the BBC TV programme Homes Under the Hammer which gives a real sense of that excitement and unpredictability. We’ve had properties go for £20,000-£30,000 above the guide price so you never know what might happen.”

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