Last Tuesday, on auction day, as I made my way through from our reception to the rostrum I was welcomed with the usual hand shakes, back pats and “good to see you”s.
There was activity wherever I looked: buyers meeting buyers, buyers meeting sellers, and intrigued parties keen to find out who’s buying what, as well as a team from a large global surveying firm, maximising the value of their research by tracking the sales and the market throughout the day.
Buyers in the room reflected our mailing list and the lots on offer, with many travelling from far and wide to experience the auction first-hand. By the end of the day we’d learnt that 22% of our buyers were internationally based. Each person had their own reason for being there and it created a certain atmosphere.
As the morning progressed people moved in and out of the auction room. Some sat and some stood. They all interacted. Some talked to fellow bidders, perhaps to run their investment appraisal past a second mind one last time before it’s tested. Others asked one of us questions to nullify that last crumb of doubt before a lot is offered.
At one stage – and I counted this myself – there were 350 people in the auction room and another 100 in the upper room either having coffee, chatting or reading legal papers. These sorts of numbers create noise and an unrivalled atmosphere which results in sales momentum, all to the benefit of our clients.
Popular Lady
Before the auction significant interest had been generated about lot 87 in Covent Garden, WC2 – the headquarters of the iconic The Lady magazine – an office and residential investment in a prime location guided at over £12m. This is the largest guide price ever in an Allsop commercial auction.
Given the attention it attracted, it was to be expected that the room would be busy when this lot was being offered, and it was. When it came up, a little after 2:30pm, there was genuine excitement by all. And when the hammer fell on the Covent Garden property at £12.4m, the room burst into spontaneous applause.
After the hammer
Despite the atmosphere, not everything sells under the hammer. In the last 12 months we have sold 143 properties after auctions, on the auction contract, raising £87.6m for our clients.
In many of these instances the buyer of these properties originated in the room. Once the hammer fails to fall on a lot interested parties in the room will invariably approach the client contact for that property and express their interest, often beginning negotiations to secure it, away from the public eye.
For buyers it’s their chance to open raw negotiations with the agent. For sellers it’s their chance to take advantage of the auction momentum and secure a sale right there and then. It’s a valuable opportunity to sell before the sale is over and with the full attention of the buyers.
Meeting in person
As I ask my final questions for our buyers survey, I reach into my pocket and notice I’m low on business cards. I must have handed them out to the people I met throughout the day.
One card I know went to Jason. Jason was in the room on a scouting mission to track a property, lot 24-57 High Street, Walthamstow, E17. Jason was so impressed by the demand in the room for this lot he had come to find me. He has a similar investment close by that he’d like me to consider for our 26 March commercial auction, but wanted to see the market response for Walthamstow first-hand and meet me before entrusting me with his own asset.
When I stood back and reflected, from the start to the finish of the day the auction room played host to a full array of people. Buyers, sellers, stakeholders, under bidders and even nosey parkers, all gathered to observe, partake and share ideas.
These people all chose to come to the room. On the day there were also 89 bidders choosing to bid by phone, online or proxy who did not attend, and 12 were successful in their purchase. But the people who did come in the flesh were there to meet the market.
Ben Hodge is an associate in Allsop’s commercial auction team
