NewcastleuponTyne-based Pattinson’s first fee-free sale for vendors achieved a success rate of just 29%.
The auction took place on 2 June at the New Connaught Rooms, WC2. The auction house, following in the footsteps of California-based Real Estate Disposition Corporation, charged no sellers’ fee and instead charged buyers5% of the sale price, plus VAT.
Just 15 out of the 81 properties offered in the room and online were sold. Six were sold prior to the auction, which raised a total of £2.6m.
Chairman Keith Pattinson remained optimistic that the success rate would improve with post-sales and in the future.
“Our marketing did not get many people there,” he said. “We had three weeks and ideally needed six to eight. We were also up against Allsop, so it was challenging.”
Pattinson added: “It is a question of getting the prices right in the room, but we were not disappointed with the result. I do not think charging buyers affected the sales rate as the seller is not being charged and is prepared to take less.”
The firm has postponed its 30 June sale for a month and will now hold bi-monthly auctions.
Repossession specialist REDC, which returns to the UK on 27 June, faced criticism from the British auction fraternity for charging buyers a 10% fee, plus VAT, and vendors nothing.
