How to get the best price for high value items

We often take control of high value items when enforcing a writ of control. Part of the requirement placed on the High Court Enforcement Officer (HCEO) is to get the best net proceeds of sale (which means that the cost of selling must also be considered alongside achieving the best price) for the items when they are sold to satisfy the writ. 

Here are some of the controlled goods we have had to take to the sale stage in the past:

• Luxury vehicles, including Ferraris
• Light aircraft
• Silver bullion
• Art
• Jewellery
• Collectibles and unusual items with a niche buyer
• Specialist equipment, such as Formula One machine tools and trailers

The method of sale that is included within the Tribunals Courts and Enforcement Act (TCEA) 2007 is by public auction, which can include an online auction site, such as eBay. 

However, with high value and/or specialist items, a general auction house or site may not achieve the best price if the target buyer is not taking part. A specialist auction may be the best option or an alternative method of sale, particularly for art, jewellery and collectibles, as they are attracting the right type of buyer.

The downside is that you may need to wait some time before the right auction is taking place for those goods. This in turn can mean increased storage costs and insurance (assuming the goods have been removed) and a longer delay for the creditor to receive payment. 

It is a judgment call to be agreed by all parties as to whether any wait is more than offset by the likelihood of achieving a higher sale price.

Under the Taking Control of Goods Regulations (TCoG) 2013, the HCEO may apply to court, giving the grounds for the application, for sale by one of these alternative methods:

• Sale by private treaty - this is where the goods are sold to a specific buyer, either an individual or an organisation, who will be interested in buying those items. For example, with the F1 machine tools, another F1 company was interested in buying them.
• Sealed bids - potential buyers are invited to submit their confidential offers and relevant details (cash buyer, for example) in a sealed envelope by a certain date. All bids are opened simultaneously after the deadline and the seller can choose which to accept based on the price offered and the buyers’ circumstances.
• An advertisement to sell the goods can be placed on online marketplaces, social media, specialist magazines or websites. The advert must comply with advertising codes of practice.

If you have a debtor with high value items that might be suitable for an HCEO to take control of under a writ, get in touch. We have a great deal of experience in understanding how to achieve the best price for unusual and valuable goods.