_Your questions about property auctions answered by Richard Watson, Head of Knight Frank Auctions

We help hundreds of people to buy and sell their properties at auction. But what are the main advantages, as well as the biggest misconceptions around the auction process? We put these questions, and more, to our Head of Auctions Richard Watson.

Q&A with Richard Watson, Head of Knight Frank Auctions

1. How did you become involved with auctions?

I was introduced to auctions while at university in Bristol when I won the regional heat of an auction competition run by the Royal Institute of Chartered Surveyors. My prize was to “run” at an auction which involved gathering buyers details and - at that time - collect the deposits in cash as well.

I became adept at counting piles of money rapidly. It gave me a real insight into how the entire auction process worked and after completing my degree, I started work at a firm that ran auctions. I have worked within auctions ever since, joining Knight Frank in 2020 to head up their auction department.

2. What do you enjoy most about your role?

At Knight Frank Auctions we have specialist knowledge in both commercial and residential property and that variety keeps things interesting. It’s always hugely satisfying to achieve our clients’ goals for them and I get real pleasure from being able to add value to an instruction.

Auctions offer a broader purchaser pool and demonstrate a very clear route to purchase. I also enjoy the interaction with other Knight Frank departments, collaborating with them to help clients. It’s one example of the added value Knight Frank provides. Then there’s the wide range of properties across many different price points, that we handle.

3. What are the main advantages of auctions?

By controlling the sales process, auctions remove many of the problems associated with the typical negotiation process. They offer speed, transparency and certainty and allow sellers to maintain better control of their sale.

Auctions work for a wide range of people. My clients have included owner-occupiers of homes that have had two or more sales falling through at the eleventh hour and want surety and peace of mind; sellers of commercial properties with highly valuable income streams; and those with unique assets that are very tricky to price but may appeal to a global audience. Auctions fit many different circumstances, depending on the property and the seller's ultimate objectives.

4. What are the biggest misconceptions about auctions?

The key misconception is that auctions don’t achieve the property’s true value. With auctions, you price from the outset at a level which you know multiple people would be interested in buying at. For a seller whose ultimate goal is to maximise the price, this can feel uncomfortable. However by doing that, you end up with a core group of proceedable buyers who will then compete against each other and extract maximum value.

A second significant misconception is that auctions are only for properties where something is wrong. This isn’t true either. Whilst auctions can be used for those properties, perhaps when selling to professional buyers accustomed to unravelling complications, we at Knight Frank also handle very straightforward sales of commercial and residential properties.

5. What have been your most memorable auction sales?

A memorable one was selling a mixed-use building in North London for a very small charity where everyone believed it was worth around £600,000. On the day of the auction it sold in excess of £1,000,000 and the trustees, all watching the sale, were understandably thrilled with the result.

An interesting sale was close to 1,000 acres of land with forests and streams and wildlife owned by the local council on a 9,000 year lease to keep as open land. Because of the changing environmental outlook, many corporate bodies were keen to buy it to demonstrate their eco-credentials and that land, with close to no value, ended up selling for several hundred thousand pounds.

Perhaps one of the most exciting was the sale of a mixed-use project on St Mary’s, the Scilly Isles, where a gentleman and his advisors arrived in his private helicopter, viewed the project, and he ended up buying it an auction, despite locals saying it would never sell to someone off island.

6. What has been your favourite auction moment?

Every auction day brings its own favourite moments. Achieving a successful sale for our clients where, as agents, we’ve worked collaboratively with the seller, agents, solicitors and advisers, within a modest timeframe, is always a pleasure. If our advice is taken, sellers are close to certain to achieve a sale at auction and that is endlessly satisfying.

7. What advice would you give somebody who has never participated in an auction or is interested in selling via Knight Frank Auctions?

Please pick up the phone and speak to us. There’s no obligation and we would be delighted to look at the property details – whether commercial or residential - to understand what you want to achieve.

The beauty of the extensive Knight Frank partnership is that if a property isn’t the correct fit for us at auctions, we will almost certainly have a department where it does fit in well and will either transfer clients to the right people or pool our resources to give unequalled exposure and success.

Auctions are growing in popularity as people see their benefits with contracts typically exchanged on the day of the auction and completion following four weeks later. Knight Frank Auctions have a rolling programme of sales throughout the year. Let us give you the best advice to achieve your property goals.

Properties currently available at Knight Frank Auctions

Available at auction: 4-bedroom house, Marylebone, London

Available at auction: 6-bedroom house, Litchfield, Staffordshire

If you’d like to register your interest for the next auction or future auctions, please contact Richard Watson, Head of Auctions