With Parts B & C moving closer to launch, we spoke with Beth Rudolf about what will be expected of agents, the dangers of non-compliance and how technology can support in easing the transition.
Online Auction Index
Introducing our new Online Auction Index - a quarterly focus on the UK residential Modern Method of Auction market and a first of its kind for the UK property market.
Welcome to our Q1 Online Auction Index
Our Online Auction Index is a first of its kind for the UK property market, and we’re launching this at a time when the Modern Method of Auction (MMoA) market has never been more active.
Each quarter the Index will evaluate the online auction market and set out predictions for the quarter ahead. It’ll also look at the great results auction is getting for Estate Agents and vendors, review performance and growth across the regions and explore consumer trends. It will be full of useful data to help agents keep their finger on the pulse of this growing market and support them in winning new instructions, by showing the success that vendors can enjoy with auction.
We hope you enjoy this first edition which evaluates January to March 2023.
- North West
- North East
- South West
- South East
• End-terraced house
• 4 viewings
• Starting bid £190,000
• Final sale price £260,000
• 6 viewings
• 1 bid
• Detached Commercial Building
• 53 viewings
• 123 bid
• Final sale price £311,500
• Detached Chalet Bungalow
• 3 bedrooms
• 26 viewings
• 2 bed Flat
• 17 viewings
• Starting bid £375,000
• Final sale price £557,500
• 3 bedroom Semi-Detached Property
• Starting bid £200,000
• 45 bids placed
• Final sale price £230,500
• 2 bedroom Cottage
• 21 Viewings
• Starting bid £140,000
• 113 bids placed
• Final sale price £227,500
"We’ve had a brilliant start to the year with auction. Our auction sale rate typically sits between 5-10% but has risen to 10-15% over the quarter, so we’re really pleased with that. Having the auction service has been a real benefit while the market has been tight, helping to push through sales and with that comes 7-day payment of our fees which is an added bonus. iamproperty does a lot of the work, which takes the pressure off our team while there’s lots to do. It’s a great partnership."
“The Modern Method of Auction (MMoA) has performed really well for us this quarter. The market has been tough since the interest rate rises which we’re still seeing now, and MMoA has been an asset. We’ve seen more motivation from vendors to sell via MMoA, who’ve understood that they needed speed and security if they didn’t want to take any chances with timescales. There’s been some great results, in particular with two properties in Leeds and Harrogate that received over 100 bids."
“This quarter has been a very strong one. The end of 2022 was a disaster for the property market, and we saw sales slowdown drastically, so auction has been a godsend because of the speed and security. We offer auction as part of our general pitch to clients and 11% of our sales now go through auction. Because of the market conditions it’s a more viable option than ever and our clients like to have the option there – people who are only being offered Private Treaty are missing out.”
Jamie’s predictions for Q1
Continued growth in sales has to be top of the list. The auction market is continuing to grow, as more vendors are looking for a different way to move and auction is ticking a lot of boxes with the speed and security it offers. Especially when compared with Private Treaty, which unfortunately in many cases is taking longer and creating more risk of sales falling through.
Throughout 2022 our monthly sales steadily increased and the data in this Index shows that continuing, which we anticipate to carry on into the next quarter across all regions.
More owner occupancy sales
I also expect to see the percentage of properties sold for owner occupancy take a bigger majority of our total sales, as more vendors continue to turn to auction over Private Treaty. It already had the majority this quarter, increasing slightly compared with this time last year.
Taking into consideration that new vendors entering the market are now more likely to be ‘traditional’ home sellers, this will keep growing.
The need for differentiation
Competitiveness to win new instructions remains high, as market conditions continue to be challenging. Mortgage rates are still high, limiting the number of ready buyers, and conveyancing timeframes are still not as fast as consumers would like, slowing transactions. In our recent survey, 50% of consumers said the conveyancing process taking too long was their top frustration when selling a property.
Auction is a viable method of sale in any type of market but can really add strength to an Estate Agency in the current market landscape because of its speed and security. Having options when it comes to method of sale can help agents to secure their pipeline, as well as win more instructions by standing out as the best option to a client by being able to offer them a choice which meets their personal circumstances.
Increase in consumer awareness
Consumers’ awareness and understanding of auction has come a long way. With more agents than ever now offering auction as part of their general pitch, and more people experiencing auction transactions, this will only continue. We’re also committed to driving up awareness and have launched a social media-led direct-to-consumer campaign.
With all of this in mind, I’d expect to see direct search for auction properties and information about selling at auction increase.