In 2017 we had been asked to confidentially advise on an unusual property, be it a cluster of garages in a yard tucked off behind some lovely houses. Granted it was a difficult asset to value, but with sound comparable evidence to back it up and the best advice we could offer, we suggested to the owner that it was worth at least £35,000 and that auction was the way to sell as it could in fact realise more.
This was met with “radio silence”… until yesterday.
The vendor rang us to say thanks: he had put the property up for sale with an agent who had agreed a sale at a price of £20,000 last year. The owner subsequently got £35,000 and sold it to the same buyer at a higher price. The owner called us to pay a fee for our service as he was happy that he had contacted us for advice. Paid up on the day, no questions.
So you can win when you lose…
However, this didn’t stop there.
A proverbial can of worms has been opened. It transpires the very same owner had instructed the same agent last year to sell another property in the same area. It turns out he had asked the agent to speak to us to put the property into our auction and they ignored the request! An offer then came in which they advised the vendor to take as it was the best offer they would get….even though the property hadn’t appeared on any portals, no board, no real advertising according to the owner.
We sold the very same property in question last year, with the new owner making a rather substantial profit. As one would imagine the former owner has sought legal advice and they say there is a case…
Even if it goes nowhere, you should be thinking about speaking to the experts as it could prove very costly in the long run.
If you need any help or advice when it comes to buying or selling a property at auction, please don’t hesitate to get in touch with our team. Our auction department has been operating for over 20 years, so our team really do know what they’re talking about!
If you do have any questions, please call 0161 443 4740 or fill in the contact form below. You can also ask your questions over twitter by tweeting @mellorauction with the hashtag #AskTheAuctioneer.