Bidding war sees Notts property sell for 54% above asking price

A bidding war broke out between investors and owner occupiers on a commercial building in Nottingham which sold for 54% higher than the asking price, thanks to an exclusive online property auction by John Pye Property Auctions.

The Malt Mill House on the Robin Hood Industrial Estate generated major interest last month (Dec) when ten investors placed bids with four battling it out for almost half an hour after the scheduled end time.

“After the sale of the property fell through earlier in the year through private treaty and going to ‘best and final offers’ we advised the insolvency firm responsible for the sale of Malt Mill House to sell the property through our online property auction platform, as this would provide the security of contract and speed of transaction required,” said Richard Reed, head of property at John Pye Property Auctions.

“Given its central location and the ongoing regeneration in the area and the fact we had generated 40 enquiries for the property, we knew the property would generate sufficient interest to hold a one off online property auction.

“This was in addition to our scheduled programme of auctions, which have increased to monthly auctions after we recorded a 350 per cent increase in lots sold within a year. In 2015, our auctions saw over £25,000,000 of property stock through our online property auctions,” he added.

The industrial unit sold comprises of a large secure yard, office accommodation and a substantial mezzanine totalling 762.02 m² (8,212 ft²) of space. Complete with car parking, additional storage, staff facilities and intruder alarm, the property is one of hundreds of properties sold through the pioneering online only property auction method.

Richard added: “More people are realising the benefits of online property auctions – which is what we specialise in. Increasing numbers of insolvency firms and estate agents are approaching us as we have bidders from all over the UK interested in our auctions and can sell properties quicker than most. This one off auction method is something we will be using again as an alternative to the ‘best and final offers’ approach.

“Our bespoke bidding system means buyers can monitor current bids and increase their offer if they wish to do so. It provides transparency and certainty compared with the ‘best and final offers’ method, which can be frustrating for both buyers and sellers.

“We’re now selling commercial and residential properties nationally from as far south as Devon and as far north as County Durham and have recruited more people to our team to help cope with demand.”

John Pye Property is continuing its 0% seller fee and nil marketing costs and is now accepting properties for upcoming monthly auctions, which are to be held on the first Thursday of every month.