Here’s a thought. If you consign a property to Biddle & Webb we will charge you a fee.
You might think this is hardly the most earth shattering statement and therefore this blog is going to a rather short read.
However the more I have looked at the property auction world, the more I see auctioneers that seem confused who their client is, and how they should earn their fees for selling a property.
A number seem to offer a zero charge to the vendor and transfer the costs and all their income sources on the buyer.
I find this business model worrying. The old business adage that you get nothing for nothing, rings in my brain.
If the vendor is being charged nothing, and the buyer pays all the fees does this not start to blur the lines defining who is the client.
However even if we accept the terms of the contract both written and implied keeps the auctioneers focused, the fact still remains that this practise will distort the market.
Let me explain. If a buyer on the fall of the hammer is then asked to pay additional fees that may include vendors selling charges, vendors solicitors fees and various other admin charges, which in total can add up to £4,000, £5,000, £8,000 or even in some cases £10,000 what will an informed buyer do. They will reduce their level of bidding from say £100,000 to £90,000 to reflect the additional charges.
I used the phrase an informed buyer as many of these charges are hidden and the auctioneers do not make as much effort as they could to draw the buyer’s attention to these charges.
This type of practise simply does not treat the buyers with respect.
Also for the policy of charging the buyer all the costs, exploits the lack of knowledge of inexperienced buyers – the new buyers that all auctions need to keep the market buoyant and bidding activity high.
The hidden charges will over time restrict the market.
So what are Biddle & Webb doing?
Well we actively work with vendors and their solicitors to explain our charging process, encourage them to settle their own auction and legal fees, and not transfer the costs onto the buyer. We also continually remind the bidders to read the contracts and legal packs, we have increased viewing times to accommodate private buyers, and have established an on line bidding service that is designed to make bidding as easy as possible for buyers that choose not to attend the auctions.
Open, transparent and fair to sellers and buyers – that’s the Biddle & Webb way.
Upcoming Property Auction – Thursday 6th July, 18:00
Lot 1: 564 Warwick Road, Solihull, B91 1AD
Estimate: £625000 – £675000
• Detached Residence
• Prime Solihull Location
• Scope For Modernisation
• Improvement and Refurbishment (STPP)
• Four Double Bedrooms (Master En-Suite)
• Dual Aspect Living Room
• Separate Dining Room
• Double Garage & Large Driveway
• Substantial
• Established Rear Garden.
Book a viewing time on our website: 26th June (16:00-18:00), 30th June (10:00-12:00), 1st July (10:00-12:00) & 4th July (12:00-14:00)
For more information:
Jeremy Thornton
0121 455 8042
Jeremy.thornton@biddleandwebb.com