Online auction method adopted by historic estate agency

A 176 year old agency is claiming success with its first online auction lot selling for over twice the guide price.

It was only a small plot of land - 0.11 acre, selling for £20,500 rather than £10,000 - but it was an innovation for the company.

Loveitts, which operates in part of the Midlands, says its new online auction “provides greater flexibility to sellers, allowing them to choose their own marketing period and auction timer.”

It adds that this is of particular use if a seller misses a catalogue date or needs to sell within a certain timeframe. Properties listed online are exclusively available by online auction and won’t be found in the auction room.

Loveitts says the kind of online auction it is using is a benefit of the dramatic rise of the internet changing estate agency.

Loveitts director and auctioneer Sally Smith says: “Online auctions provide all the benefits of buying and selling by auction, just with an eBay style of bidding. Rather than having to wait until our next regional in-room sale, properties are readily available online at any time, with exchange on the fall of a virtual hammer.

“The auctioneer’s primary aim is essentially to bring the best elements of a traditional auction to the public through a digital framework – something that includes operating with complete transparency so all costs are consistent with traditional auctions and buyers know exactly what they’re bidding on.

“There are several advantages to online auctions that differ from the traditional auction. For instance, they provide greater access and convenience to bidders which is ideal for interested buyers as many of those who attend our by-monthly in-room auctions come from all over the country.

“More crucially, as sales are usually delivered in four to eight weeks, properties are sold on average far quicker online than if sellers went down the traditional route of selling, which typically takes around six months to complete. As all bidders in the online auction have a vested interest and would suffer somewhat of financial loss if a sale did not proceed to completion all parties are focused and committed towards a successful sale.”