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Nicholas Cage

Property Auction, Largest Number Of Lots Catalogued In Almost 20 Years Of Trading

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A staggering 205 Lots were catalogued in our September auction, the largest number of Lots catalogued in almost 20 years of trading. It was a real testimony to the phrase “having to please everybody” and that was certainly some of the comments made by prospective buyers, which then culminated with queue upon queue of prospective buyers registering to bid at all three auction events.

The three sales were simply packed to the rafters with hundreds of prospective buyers there for one thing and one thing only – to be successful with their bid. Some were and raised £26 million, but some went home empty handed. More suitable properties could have been sold with such a fantastic and buoyant trade.

http://www.cliveemson.co.uk/latest_report.asp

Seems people are calling the top of the market. Although the auction house will be happy with £26 Million and commision.

Prospective buyers were queing even as the sellers swamp the market.

Edited by maxwell

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Although the auction house will be happy with £26 Million and commision.

Prospective buyers were queing even as the sellers swamp the market.

Are such auctions widely publicised? Are selling prices available for statistical analysis?

How does one find out about auctions in one's area? During the BTL boom this seemed to be a closely guarded secret... Are we about to see auctions more widely publicised in an effort to improve the market value of properties by marketing towards prospective owner occupiers?

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Are such auctions widely publicised? Are selling prices available for statistical analysis?

How does one find out about auctions in one's area? During the BTL boom this seemed to be a closely guarded secret... Are we about to see auctions more widely publicised in an effort to improve the market value of properties by marketing towards prospective owner occupiers?

Banks will realise they will now more than likely get better returns on their repo's from people who actually want a house, now the BTL crowd have put there chequebooks away. So local auctions would be logical, rather than London ones. That's my guess anyway...

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Banks will realise they will now more than likely get better returns on their repo's from people who actually want a house, now the BTL crowd have put there chequebooks away. So local auctions would be logical, rather than London ones. That's my guess anyway...

not sure about the leaglity of that- the bank is under a duty to get the best possible price for a possessed property, otherwise the defunct borrower will be able to claim a refund on his debt, and an auction is usually a place where "bargains are to be had". I know if my assett was sold off at auction, I d be the first to complain.

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More signs of a healthy property market if you ask me. Nothing to see here move along.

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More signs of a healthy property market if you ask me. Nothing to see here move along.

I didn't think the Southampton sale looked at all healthy. They sold 15 properties and failed to sell 12.

Clearly some regions are deep trouble (those further away from London) and I think the malaise will gradually spread towards London.

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I didn't think the Southampton sale looked at all healthy. They sold 15 properties and failed to sell 12.

Clearly some regions are deep trouble (those further away from London) and I think the malaise will gradually spread towards London.

Once again IRONY!!!!

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not sure about the leaglity of that- the bank is under a duty to get the best possible price for a possessed property, otherwise the defunct borrower will be able to claim a refund on his debt, and an auction is usually a place where "bargains are to be had". I know if my assett was sold off at auction, I d be the first to complain.

The arguement here is the best price was had in a no risk of no sale environment. You could complain but I think it has been shown by past experience that the Auction is the way to go on a Repo. It's too difficult to put a Repo on the market through an Estate agent, sometimes it happens but they still invite sealed bids. It's a lot more trouble the other way, ie put it on with an estate agent, get an offer of 25% below - what is the bank supposed to do, wait 6 months for a better offer and if they accept the 25% off offer what if the buyer is somehow related to a staff member at the bank - Oh no send it to Auction!!

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Well, as sellers they obviously wish to sound as positive as possible to encourage future sellers. What worries me is this focus on impressing future sellers - it suggest it's still a sellers' market, otherwise they'd focus in their report on talk of great discounts for buyers instead of repeatedly saying how lots went for above their reserve or even much higher, double, blah blah blah. Of course, I don't know what the usual price is of the homes they mention, they may still be discounted - or not. It's NOT good bear food though, not at all. If it's true and not conveniently omitting disappointing sales then we're either still in Bull Trap phase or there's lots of people been waiting on the sidelines for any dip and they could take up any slack for however long. Interesting indeed, and I remain bearish but alarmed at this.

BUYERS ENJOY £26 MILLION SPENDING SPREE IN AUCTION MARKET THAT IS

AS CONFIDENT AS EVER!

A staggering 205 Lots were catalogued in our September auction, the largest number of Lots catalogued in almost 20 years of trading. It was a real testimony to the phrase “having to please everybody” and that was certainly some of the comments made by prospective buyers, which then culminated with queue upon queue of prospective buyers registering to bid at all three auction events.

The three sales were simply packed to the rafters with hundreds of prospective buyers there for one thing and one thing only – to be successful with their bid. Some were and raised £26 million, but some went home empty handed. More suitable properties could have been sold with such a fantastic and buoyant trade.

DAY ONE – THURSDAY, 20 SEPTEMBER 2007

THE HILTON BRIGHTON METROPOLE, BRIGHTON

COVERING SUSSEX AND SURREY COMMENCING AT 11.00 AM

The first Lot of the day was a two-bedroom house for improvement situated in Caves Road, St. Leonards-On -Sea. The property, which is in need of improvement and refurbishment, had a pre-auction Guide Price of £70,000-£80,000 and sold for £85,000 which set the trend for the day’s bidding.

There was a good selection of terraced and semi-detached houses in Guildford, Surrey, which all sold well above their Reserves and Guide Prices with Lot 2 – a semi-detached property in Cabell Road a house in need of refurbishment having previously been let to students and Guided at £190,000-£200,000. After fierce bidding the Auctioneer’s gavel finally fell at a healthy £221,000 and in Cobbett Road also in Guildford another semi-detached property situated in a cul-de-sac location again, requiring improvement, refurbishment and some repair, was advertised with a pre-auction Guide Price of £190,000- £200,000 although realised £230,000 on the day.

The Sussex and Surrey Auction offered four former telephone repeater stations on behalf of TeleReal with the one at Felbridge near East Grinstead, sparking electrifying bidding as the Lot finally sold at £70,500 against a pre-auction Guide of £30,000-£35,000.

In Hove, catalogued as Lot 33 a two-bedroom ground floor flat situated within an attractive double bay fronted Victorian villa was offered. It required refurbishment and improvement throughout and was Guided at £210,000 plus. The eventual hammer price was a healthy £255,000.

Wish Street Car Park in central Rye is, as its name suggests, a car park. A privately run ‘pay and display’ car park situated in the heart of the Cinque Port town of Rye with around 80 parking spaces and, although considered ideal for investment, may also provide future hope value. Guided at £900,000-£1 Million pounds, the hammer finally fell at a massive £1.13 million.

Bidding was, however, phenomenal for Pantiles, a fire damaged bungalow, and a “flaming” good Lot in Crowborough. The property is suitable for re-instatement although more likely to be re-developed. With a pre-auction Guide Price of £125,000 to £150,000, Pantiles made £280,000.

For specific enquiries regarding the Sussex and Surrey auction, contact James Emson, Sam Kinloch, Emma Attrell or John Hole at Clive Emson Auctioneers on 0845 6036614.

DAY TWO – FRIDAY, 21 SEPTEMBER 2007

THE RAMADA HOTEL, MAIDSTONE

COVERING KENT AND SOUTH EAST LONDON COMMENCING AT 11.00AM

The first terraced house to come under the auction spot light was a two-bedroom terraced house in Smith Street, Rochester offered on instructions from Medway Council. The house requires improvement and refurbishment Guided at £90,000-£95,000. The hammer fell at a healthy £121,000 setting the trend for the day’s bidding.

Still in the Medway Towns, a three-bedroom terraced house in Beaconsfield Road, Chatham was Guided at £115,000-£125,000, and after fierce competition, sold for £128,500. In Newington, near Sittingbourne, offered with a pre-auction Guide of £125,000 + a two-bedroom end-terrace house again in need of refurbishment and improvement was sold. Bidding was fast and furious, but the hammer eventually fell at a healthy £136,000.

In Chelsfield near Orpington, a semi-detached house again requiring updating and modernisation, situated in an established residential area, came to the market with a pre-auction Guide of £230,000-£250,000. The three-bedroom house sold for £270,000 while a mid-terrace bay fronted three-bedroom house at Eglinton Hill, Greenwich SE18, sold at £280,000.

As we move to the East Coast of Kent, Lot 82 was offered on instructions from the Power of Attorney. Situated on London Road, part of the one- way system around Dover Town Centre, the three bedroom terraced house with a pre-auction guide of £75,000 to £80,000 attracted scores of prospective purchasers prior to the auction and, on the day, bidding was fast and furious as the hammer finally fell at a healthy £108,000.

Moving to the outskirts of Dover and catalogued as Lot 151, is a charming end-terrace cottage for improvement. Internally, the cottage had not been decorated for around 40 years and provided prospective purchasers with a blank canvass. The three-bedroom end-terrace cottage had a pre-auction Guide of £120,000-£125,000 but, again, after fierce competition, sold for £172,000. In Folkestone, 8 Denmark Street located close to the parade of shops in Canterbury Road, comprising a bay fronted three-bedroom house, requiring total and complete refurbishment and improvement had a pre-auction Guide Price of £75,000-£80,000 and again, sold well at £108,000.

Moving inland slightly to Lot 164, 11 St. Radigunds Street, Canterbury - a very attractive period four bedroom house situated close to the City was offered. The three storey property, which is in need of improvement and redecoration, was Guided at £230,000-£250,000 although sold for £264,000. Also in Canterbury, Sturry Road, a mid-terraced cottage for improvement and refurbishment was, again, offered. The two-bedroom cottage had a pre-auction Guide of £110,000- £120,000 and sold for £122,000. In Ashford, and situated on the Stanhope Estate an end-terrace house, which suffered severe fire damage was offered on behalf of Ashford Borough Council under a Court Order. The pre-auction Guide Price of £50,000- £70,000 was surpassed and a “flaming” good price was achieved as the hammer fell at £94,000.

The Lodge Gatehouse at Sandling near Maidstone was offered on behalf of Maidstone Borough Council and is an attractive two bedroom stone and brick constructed property now requiring refurbishment and modernisation. It achieved £225,000 against its £145,000-£155,000 Guide Price.

For the commercial buyer, there was a sprinkling of quality Lots, which included a former care home on a 1.2 acre site in Sidcup. Offered on behalf of the London Borough of Bexley Council, the substantial two-storey purpose built property constructed, it is believed in the 1960’s, provided extensive care home accommodation. The pre-auction Guide Price of £1.4-£1.5 million was surpassed as the intense bidding created a successful buyer at £1.8 million.

An attractive High Street commercial investment in Broadstairs let, in part, to Conveyancing Company and a Counselling Company realised £200,000 against its £160,000- £175,000 Guide Price, representing a 5.5% return on investment. At Westbrook near Margate and catalogued as Lot 162 with a pre-auction Guide Price of £240,000-£250,000 are two inter-connecting shops with two maisonettes on the upper parts. The entire property was let at £13,000 per annum and realised £295,000 in the auction room, representing a 4.4% return on investment.

A huge and substantial factory building known as the Barrett George Building in Tivoli Road, Margate occupying a 1.5 acre plot, was Guided at £650,000-£680,000 although realised £690,000 on the day, well above its Reserve! Lot 158 an outstanding Industrial investment comprising 12 units built in the 1970’s by the current owner and let at a combined rental of £118,550 per annum created confident bidding by three prospective buyers and a final selling price of £1.5 million pounds was achieved.

There were various plots and parcels of land, some with planning consent, including an excellent development site in Littlestone with outline planning permission for eight houses, subject to a Section 106 Agreement. It had a pre-auction Guide Price of £300,000-£320,000 although realised £430,000 on the day of the auction. Sites with potential also attracted interest with two sites being offered on instructions from Trustees in Bankruptcy, the first being the land off New Pond Road, a ¼ acre site, which doubled its pre-auction Guide Price to sell at £100,000 and a site in Woolwich, London, which almost quadrupled its Reserve Price when it sold for £175,000. There were two notable lots of grazing land, the first being 10 acres at Braystead Chart near Westerham, which realised £105,000 and a further site with agricultural barn at Aldington. The 23 acre site had a pre-auction Guide Price of £100,000-£110,000 and realised £157,000 on the day.

An intriguing Lot, Lot 168, was situated in the Conservation area in upper Walmer and is what is believed to be the remains of a Norman fortified manor house built in the 12th Century. Described as a ‘secluded ancient monument site’ and offered with a pre-auction Guide Price of £15,000-£20,000. The site created phenomenal pre-auction activity, which culminated in £44,000 being achieved on behalf of the Client.

For further details regarding Kent and South East London auctions, contact John Stockey, Kevin Gilbert, Ben Snelling or William Page on 0845 8500333.

DAY THREE – TUESDAY, 25 SEPTEMBER 2007

THE ROSE BOWL, SOUTHAMPTON

COVERING HAMPSHIRE, WILTSHIRE AND THE ISLE OF WIGHT COMMENCING AT 11.00AM

The first house of the auction was a two-bedroom mid-terrace house in Fratton, Portsmouth, which was Guided at £100,000-110,000. The house needs upgrading and refurbishment and sold under the auctioneers hammer for £118,000. Two former telephone repeater stations were offered on behalf of Telereal. The first was in Abbotts Ann near Andover, which realised £12,000 while the second one in Whitchurch made £14,000.

A three-bedroom bungalow enjoying sea views at Egypt Hill, Cowes on the Isle of Wight topped its Guide Price when it sold for £350,000 and in Sandown two flats and a bedsit being sold with the remainder of a 999 year Lease from 1853, sold well at £148,000. At Ashfield, Romsey in Hampshire, a collection of redundant farm buildings, which included barns and pig stys nestling on a site of just over an acre, sold for £460,000 against a £440,000-£460,000 Guide Price. Planning Permission has been granted for the change of use and conversion of the redundant farm buildings to B1 use, subject to conditions.

The final Lot of the triple-day auction was a freehold block of four flats in need of upgrading and refurbishment and once enhanced, could be ideal for investment. The four-storey building situated in South Sea, Hampshire, had a pre-auction Guide Price of £280,000-£300,000 and after some frenzied bidding, the final price achieved was a very healthy £341,000.

For specific enquiries on the Hampshire auction covering Hampshire, Wiltshire, Cornwall and the Isle of Wight, contact Robert Marchant on 0845 6001265.

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I didn't think the Southampton sale looked at all healthy. They sold 15 properties and failed to sell 12.

Clearly some regions are deep trouble (those further away from London) and I think the malaise will gradually spread towards London.

Failing to sell at an auction is the result of reserve being not made.

The few stats I have looked at seem to indicate that auction sellers are

still being unrealistic about their reserve price, and many sales do not]

go through because the seller has put a reserve on at a psychological barrier.

A reserve of 100,000 is silly, because it is at a barrier.

A reserve of , say, 98.5 is more likely to be met.

All they will do is stick it in next month's auction at a lower reserve.

.... but they may chase the market down if they are not careful.

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Guest happy?
Well, as sellers they obviously wish to sound as positive as possible to encourage future sellers. What worries me is this focus on impressing future sellers - it suggest it's still a sellers' market, otherwise they'd focus in their report on talk of great discounts for buyers instead of repeatedly saying how lots went for above their reserve or even much higher, double, blah blah blah. Of course, I don't know what the usual price is of the homes they mention, they may still be discounted - or not. It's NOT good bear food though, not at all. If it's true and not conveniently omitting disappointing sales then we're either still in Bull Trap phase or there's lots of people been waiting on the sidelines for any dip and they could take up any slack for however long. Interesting indeed, and I remain bearish but alarmed at this.

Like others who've posted on this thread and who know this area I'd say these are not good prices and the press release is definitely whistling in the dark to keep spirits up. I'll probably post a detailed breakdown of why I think they're whistling in the dark on the local prices thread a little later - however one major clue that this was a rushed / superficial puff-piece written by a semi-literate at a national office is in the reference to 'South Sea' - the area has always been known as Southsea (one word) - a niggling detail admittedly but that's where the devil lies.

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Look at a few of the previous auction results on the clive emson site - there appears to be a trend of fewer and fewer successful sales at each auction - I must admit that this particular auction seems to have bucked the trend of the last few months - strange.

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Like others who've posted on this thread and who know this area I'd say these are not good prices and the press release is definitely whistling in the dark to keep spirits up. I'll probably post a detailed breakdown of why I think they're whistling in the dark on the local prices thread a little later - however one major clue that this was a rushed / superficial puff-piece written by a semi-literate at a national office is in the reference to 'South Sea' - the area has always been known as Southsea (one word) - a niggling detail admittedly but that's where the devil lies.

Thanks for posting, I gladly bow to your superior knowledge, and pretty good detection abilities!

Just to draw on my own aucton experience back in the last crash - auctions typically had nothing reach the reserve, however. I was at a good few at hotels on the South coast. We're clearly not at that point yet, whatever else things may be.

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