The Experts Group has launched a new self-employed network for specialist sales by property auction.
The Auction Experts will operate under a similar model to its ‘sister’ companies, The Property Experts, The Letting Experts and The Mortgage Experts, whereby the auction experts will be self-employed.
Founder Sean Newman (main picture) says: “We are seeing more and more estate agents taking the self- employed route, however one of the biggest concerns for many that don’t go self-employed, is the time it takes to start earning money because of sales dragging or potentially falling through.
“Self-employed auction experts are just like self-employed estate agents, except they focus solely on properties suitable for auction.”
NICHE MARKET
He adds: “This is a niche market with less competition. The main benefit is that the Auction Expert can earn money in month one – they can list a property at the beginning of the month and get paid at the end of the month – it’s quick and easy. That’s a huge advantage if you’re going self-employed – you don’t have to wait for six months before your first sale completes.”
The auction market is changing. More and more sellers are choosing to auction as an alternative to a private treaty sale because of the speed and security.
Data from the Essential Information Group, showed an increase of 16% in 2023 and this year has seen even more property come to auction, with an 8.7% increase in lots offered and a 9% increase in lots sold, just in September.
BUSINESS IN A BOX
Ray Purchase, Managing Director of The Auction Experts, adds: “What we’re offering is a ‘business in a box’.
“We provide all the tools, support, training, technology and marketing. We have a success blueprint which provides systems and strategies to identify auction properties and contact the owners.
“There is no need to compete with other estate agents overvaluing, offering low fees and dealing with unmotivated sellers. Auction sellers are motivated, benefit from no fee and understand the principle of starting with a low guide price to attract interest and create competition between bidders.
“The 2% standard fee (minimum £2,500) is paid from the buyer premium and 70% of it goes to the self-employed Auction Expert. This means just one sale a week can generate an income of over £100,000 a year.”
PROBLEM PROPERTIES
Until comparatively recently, auction sales were used in the main for problem properties and properties in disrepair. Purchase believes that is no longer the case.
“Any property can be an auction property,” he says.
“What we are looking for is people who can identify an auction property – a seller who wants to transact quickly.
“In days gone by, auctions were conducted in a local hotel with builders or investors bidding for properties that wouldn’t sell via the traditional process.
ENTREPRENEURIAL MINDET
“Covid changed all that and it’s never gone back. Virtually every auction is now online.
“Having said that, auction sales are not for everyone. If you don’t need to sell quickly and want to generate the maximum amount of money for your property, then, maybe, auctions are not for you.
“But if you do want to sell quickly and securely – and for many people the speed is a great benefit – sale by auction is the solution.
“I’m looking for people who want to spread that message. People who are part of their community and want to build an auction business, like I did, by providing first class, personal service to clients and creating a network of local buyers and local sellers.
“I’m looking for 100 from all over the country. All they need is some experience working in the property sector and an entrepreneurial mindset. We’ll provide the support they need to be their own boss and control their own destiny.”
