In the realm of commercial real estate, navigating the sale of a property with complex potential uses requires a strategic approach.

Such was the case with a former commercial car garage situated on a 1.7-acre freehold site on the outskirts of a vibrant market town in Worcestershire.

In this case study, auctioneer Matt Burrows looks into the story of how a decision to leverage the auction process not only produced a swift and secure sale, but also unlocked value for the sellers amidst challenging circumstances.

The property and the challenge

The decision to sell the freehold premises arose following the cessation of business operations. The owners, eager to move on swiftly from a difficult period, sought a solution that would balance the need for speed with securing a sale at an optimal price.

Additionally, the property’s potential for various uses, including residential development, other commercial purposes, or reinstatement as a car garage, added layers of complexity to the decision-making process.

Exploring options

Given the sellers’ desire for a quick and secure transaction, traditional methods such as a sale on the open market posed potential risks of delays and complications.

The inherent complexities associated with former car garages further underscored the need for a solution that could streamline the selling process and reduce the potential for buyers to change their mind part of the way through conveyancing.

These considerations led the client to choose a sale by public auction, offering a competitive and secure platform within a condensed timeframe.

Decision and execution

Opting for an auction approach, the property was presented with a competitive guide price of £425,000 to attract interest from prospective buyers.

To enhance marketing efforts, professional photography was produced to showcase the property’s potential.

Launching the Lot six weeks before the auction date yielded promising results, with 18 viewings indicating a strong level of interest. On auction day, the property garnered fierce bidding, with five interested parties vying for ownership.

The outcome

The culmination of the auction was met with resounding success. The property sold for £525,000, exceeding expectations and providing the sellers with the desired outcome of a quick and secure sale at a favourable price point.

With contracts exchanging immediately and completion within four weeks, the sellers were able to move forward with confidence, leaving behind the challenges of the past.

This outcome not only demonstrated the effectiveness of auctions for properties with high interest and complexity but also underscored their ability to unlock value in the commercial property landscape.

Key takeaways

Several key lessons emerge from this case study: properties with complex potential uses may find auction sales advantageous due to their ability to attract competitive bids; auctions offer a fast and secure method of sale, particularly well-suited for motivated sellers seeking expedited transactions; and despite inherent complexities, auctions streamline the selling process and ensure a sale at the best price, providing sellers with confidence and peace of mind.

Conclusion

The success of this commercial property auction exemplifies the power of strategic decision-making and proactive execution. By embracing the auction process, the sellers not only achieved their objectives but also unlocked value amidst a landscape of complexity and uncertainty.

This case study serves as a testament to the efficacy of auctions in navigating the intricacies of commercial property sales, ultimately enabling sellers to chart a course forward with confidence and optimism.