Monday, 16 March 2015

Ballintotty - Nenagh Auction Result 100% Success, 5 out of 5 lots sold.

REA Eoin Dillon of Nenagh offered a residential farm for sale by public auction at Ballintotty, Nenagh, Co. Tipperary.  There was a large crowd in attendance at the Abbey Court Hotel and the late comers had to avail of standing room only with many observers choosing to observe from the hall outside the room.  The crowd was no doubt helped by the inclement weather on the afternoon with little opportunity for ploughing or spreading slurry. 
The property was offered for sale in 6 different lots. Lot 1 was a parcel of 19.13 acres (7.742 hectares), of which 6 acres were planted in trees since 2001 and the remainder of approximately 13 acres was reasonable quality grass lands.  The agent started seeking bids of €130,000 and dropped in increments of €10,000 to €100,000 where a local farmer opened the bidding, this was quickly followed by a local solicitor who offered €105,000 and they exchanged bids of €5,000, to €115,000.  At this stage the auctioneer announced that the property was not on the market yet but was close to the reserve and the lot was parked while they offered the next few lots.  Lot 2 was 7.5 acres and comprised of 6 acres of forestry and 1.5 acres of poor quality grass land.  The agent sought bids of €30,000, €25,000 and €20,000. There were no bids and accordingly they quickly moved on to lot 3.  Lot 3 comprised of 14.853 hectares (36.7 acres) of forestry, again €130,000 was sought and the agent went down in €5,000 segments seeking an opening bid.  An opening bid of €110,000 was then received from a solicitor acting in trust, there were no further bidders for this section and a short break was taken to discuss the first 3 lots with the vendor. 
On resuming the auction the auctioneer announced that we were €5,000 away from being able to put Lot 1 on the market and a bid of €120,000 was quickly received from a local auctioneer acting in trust and the land was officially placed on the market.  The solicitor duly obliged and offered €125,000 before the land was knocked down to him acting in trust for a young local farmer. 
Lot 4 comprised of the house on 7 acres (to include approximately 6 acres of forestry) again an opening offer of €130,000 was sought and the agent worked the room seeking bids before an opening offer of €90,000 was received from a young couple.  A second young couple then entered the race and the property quickly climbed in bids of €5,000 to €130,000.  As lots 4 and 5 were also being offered as a joint lot (Lot 6) this offer was parked while the agent offered lot 5.  Lot 5 was a single stubble field comprising of approximately 40 acres of what can only be described as very good land with excellent road frontage.  It was clear from the off that this was what everybody was interested in.  The Agent sought offers at €450,000 and went down in €10,000 to €350,000 before an opening bid of €350,000 was made by a local solicitor acting in trust for a local farmer.  A second bidder quickly emerged in the form of another local solicitor again acting for a local farmer.  In fact the two solicitors were from the same local firm acting for two separate clients. They quickly traded bids of €10,000 to €440,000 and then in €5,000 increments to €470,000 with no one else in the room getting a sniff of the action.  The biding stopped at €470,000 and the agent offered lot 6 for sale (Lot 6 was lot 4 and 5 combined).  Having a combined bid of €600,000 the auctioneer sought an opening offer of €605,000 there were no takers and after a very short break the agent came back and announced that he had instructions to put lot 4 the residence on 6.7 acres on the market at €130,000.  There were no further bidders and the lot was knocked down to the highest bidder at €130,000.  The Auctioneer Eoin Dillon then announced that he was also happy to say that Lot 5 was on the market at €470,000.  The bids then came fast and furious rising to €475,000, €480,000, €482,500, €485,000, €487,500, €490,000 €492,500, €495,000, €500,000, €502,500, €505,000, €510,000, €515,000, €520,000, €525,000, €530,000 before the final bid of €535,000 was received from a solicitor acting in trust or a local farmer.  The sale represented an extremely good price of just over €13,000 per acre.  Immediately after the auction offers were made by a number of parties for the remaining two lots and both were sold at what is believed to be at or very close to their original asking price and the auction contracts were signed. 

Speaking after the auction the selling agent Eoin Dillon said that he was delighted with the result, two hours previously he would have been delighted with if 3 out of the 5 lots were sold but to get all 5 lots sold on the day was incredible.  The prices for the lots were bang on what was expected with the main tillage field making the higher end of everybody’s expectations.  It just shows that where you have good land in a good location there is always a market for it.  It was also great to see that the purchasers of all 5 lots were hard working local persons seeking to expand their holdings and a in the case of the residence to set up a new family home.