Willmotts’ Ray Richardson’s recent innovation of introducing guide prices in his catalogues, reported on this page on February 7, has met with less than an enthusiastic response from other auctioneers in the real estate field.
Robin Cripp, auctioneer with Barnard Marcus, said: “I’m not impressed by it — it’s no good for anybody. Take a vacant house, for example — I’ll think it’s worth so much for no real reason, but with three people in the room all interested in the lot the price will go up.
“The guide price idea could lead to people stopping bidding above the guide price because they think they are being ripped off. If people phone us we can explain our reasons for a guide price rather than put a cold figure on paper.
“Selling is down to communication.”
Allsop & Co’s Clive Carpenter broadly agrees with Mr Cripp’s observations. He commented: “We certainly considered the possibility a number of years ago, but have turned the idea down on the basis that it is dangerous or even damaging for the vendor.
“There is a danger of quoting too high and putting off purchasers or of pitching it too low and depressing the market expectation and spoiling the client’s interests. We like to discuss the likely realisation very informally. Willmotts could live to regret the day they did this.”
Richard Auterac of Jones Lang Wootton feels that the idea is right in principle, but has serious misgivings about the practical aspects. He said: “In principle, anything that encourages people to buy at auction is a good thing, but I think printing guide prices is basically dangerous.
“People may get confused between the prices and the reserve. Also, if you print a reserve you can’t adjust the price to market demand.
“The idea has major drawbacks, but is a super idea in principle.”
Benjamin Tobin of Strettons said that people telephone his firm not only to ascertain the guide price but also to obtain some background. “It is at this stage that we are selling the property hardest,” Mr Tobin continued. “We record the name and telephone number of every caller who mentions a specific lot. In this way we have a complete indexed register for each property so that if there is a change or if the lot is unsold we can pursue. Because of this we tend to sell a high proportion of the few unsold lots which we have.”
Mr Richardson is sticking to his guns. He declared: “The catalogue has been out now for 10 days and has been very well received by purchasers.
“When you think about it, all the auctioneers have been issuing guide prices from their offices. There is a catalogue marked up in my office and anyone can come along and look at it. We have taken time and care on the guide prices and only print them with prior agreement with the vendor.
“Where the guide price does not appear in the catalogue either the vendor doesn’t want it printed or he is being too greedy. However, 90% want the system.”
