A property with no reserve and a starting price of just £1 has been sold at auction for £31,000.
Auctioneers iam-sold included the lot in a sale in County Durham.
The property, a three-bed terrace in Shildon, County Durham, was listed through the Great North Property Auction and iam-sold’s partner agent, Robinsons.
A spokesperson for the auctioneers said: “The property was listed in the auction with a reserve price but was not getting the desired interest at the figures it was placed at.
“The auction team suggested reducing the price but the vendor wanted to think on it further.
“The auction co-ordinator managing her property discussed the idea of doing something drastic to increase the amount of interest and the number of viewings by offering the property for a £1 start bid – i.e. no reserve price.
“The owner wouldn’t have been happy if it sold for £1, but the auction co-ordinator was confident that it would sell for the value it was worth.
“The vendor decided to go straight to auction, not private treaty.”
Bidding on the property opened well ahead of £1, at £500, and the eventual purchaser is thought to be a buy-to-let investor.
Iam-sold uses the modern method of auctioneering, meaning that lots bought in the saleroom do not complete immediately.
What would have happened if the property actually had gone for £1 – could the seller have pulled out of the deal?
The spokesperson said: “It was highly unlikely that it would sell for that, and the fact it sold for £31k just shows that a property will always sell for what it is worth through the modern method of auction.
“If it had sold for £1, then the vendor would have had a penalty charge to pay in the event they decided not to proceed with the sale and the buyer would be refunded. That way, all parties get a fair deal.”
Comments (3)
This article seems to be missing a few facts. Modern method of auction? Traditional auctions don't complete immediately – they exchange immediately. The vendor would have had to pay more than a "penalty charge" if he refused to complete – the purchaser could have taken court action to recover the property and force completion. Sounds like a "conditional" auction with a difference. Can we have a bit more info please Ed?
Old news, I'm afraid – happens up here pretty regularly. "…the fact it sold for £31k just shows that a property will always sell for what it is worth through the modern method of auction." Erm, no. It shows that it will only sell for the top bid on the night.
What's the "modern method of auctioneering" then? A gimick surely – if there were no bids on the night, the owner would have just got his Uncle **** to bid it up?