AUCTION has often proved itself to be the best way of selling land as it can drive interest of competing parties, and consequently prices, upwards.
This often helps land sold at auction to achieve a higher figure than might have been the case if it had been offered by an alternative method such as private treaty.
With any form of sale there are advantages and disadvantages and selecting the right parcels of land to go to auction is crucial.
In the last two years Stags has demonstrated this ability, boasting an impressive figure to underline this point.
Stags Farm Agency Department has a 100 per cent success rate for land advertised at auction and this statistic was upheld at the most recent land auction held at The Devon Hotel, Matford on Friday, June 28.
Stags Farm Agency had two land lots entered, the first being land on Woodbury Road on the outskirts of Woodbury.
This consisted of 11.24 acres of level, good quality arable ground, in an accessible and prominent location. Guided at a realistic level of offers in excess of £100,000, interest leading up to the auction was encouraging and this was converted to bids on auction day, with the land realising £141,000.
Bought by a local farming buyer, this equates to a figure of just over £12,500 per acre, one of the strongest results of the year so far for land.
Previous examples of successful results for land in the East Devon area sold at auction include land sold at Upham Farm, Farringdon in July 2012.
This achieved almost £11,300 an acre for 39.02 acres of good quality arable ground. Similarly, 13.45 acres of arable ground at Clyst St George went to auction in October 2012 and made nearly £14,500 an acre, which was certainly one of the standout results in the last 12 months of land sold anywhere in the UK.
The second entry in the most recent auction was 0.87 acres of amenity woodland located on the outskirts of Bridford in the Teign Valley.
A strategic marketing campaign again yielded some promising enquiries prior to the auction with significant interest coming from some of the home owners in the local area.
Guided for offers in excess of £10,000, the land realised £12,000 which equates to a figure of over £14,000 per acre.
These results highlight the importance of selecting the right parcels of land to send to auction, and furthermore, that if carried out correctly, land sold at auction may achieve higher figures than might normally be expected.
Although there is never a guarantee to success, it seems there are some key features which aid auction success; firstly, ensure it is the right parcel of land to go to auction, something for which there is a clear target market and where competing interest seems likely to drive bidding.
Secondly, generate interest through a targeted and strategic marketing campaign which encourages potential purchasers to come forward and lastly, set a realistic price guide to ensure that not only is interest captured, but people are enticed into attending the auction with a realistic view of the expected sale price.
The fact that Stags Farm Agency Department has a 100 per cent success rate in the last two years for land advertised at auction clearly demonstrates an ability not only to identify suitable land for auction, but also to ensure it receives full market exposure in order to maximise its likelihood of success.
