Member Article

Farmland near Banbury sells for 45 per cent above guide price after online auction

A parcel of farmland up for sale near Banbury that sold for 45 per cent above its guide price at online auction shows the strength of the sale method, a leading property consultancy has said.

FG Auctions, part of Fisher German which has an office in Banbury, sold the 23-acre parcel off the Southam Road in Mollington for £376,035 after attracting 61 separate bids.

The owner of the land, which was previously used as grazing pasture, was unsure about its value after being approached by several people interested in buying it off-market.

He received several offers, which were very mixed and he was not sure if he was getting a good price for the land.

The owner contacted Fisher German’s Banbury office and was put in touch with Tom Dennes, head of online auctions at the firm.

Tom recommended the owner put the land up for auction instead of trying to sell it in the traditional way.

He said: “Putting the asset up for auction is the truest test of its actual value, and you’ll know that the buyer who really wants that asset will be prepared to pay a little more for it.

“This was clearly the case for our client in Mollington, who did not know if the offers he was receiving were actually fair.

“As he also didn’t want to choose one buyer over another for fear of upsetting people, we suggested putting it up for online auction and letting potential buyers bid for it.

“Once the auction began, it was clear that there were plenty of interested cash buyers who were willing to put good offers in to acquire it. After generating a lot of bids, it achieved far more than its £260,000 asking price, which was a brilliant result.”

Online auctions have increased in popularity at Fisher German in recent months due to its convenience and ability to produce a definitive outcome.

And while the traditional method of selling property through private treaty is still very popular, Tom believes online auctions are no longer being considered as a last resort.

“In cases like this where landowners have had parcels of land for a while that later need to be sold, it can often be prudent to consider an auction when the value of the land is difficult to estimate through private treaty,” Tom added.

“Buyers and vendors have told us they love the transparency of the dynamic online auction platform, with all offers visible and the certainty of a sale once the reserve price has been met.”

This was posted in Bdaily's Members' News section by Matt Joyce .