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.
Common misconceptions around property auction and how to resolve them
With low stock on the UK property market and 24 potential buyers for every available property, Estate Agents need to think flexibly if they want to gain the lion’s share of the market. Embracing property auction for your clients can unlock new opportunities that Private Treaty alone may not reach. The rise in popularity of TV programmes like Homes Under The Hammer has brought property auction to the mainstream. In addition, technological advances have enabled methods such as the Modern Method of Auction (MMoA) to attract increasing interest from buyers and sellers alike. However, some old misconceptions remain, and as Agents, you have the power to educate potential clients on the benefits of online property auction
Property auction is for everyone, not just investors
The idea that property auction is only suitable for investors is an outdated one, but one that persists. What many prospective buyers and sellers don’t realise is that people can buy properties through MMoA with a mortgage. This financial benefit unlocks a whole new pool of potential customers – even first-time buyers.
When people think of auction properties, renovation projects often are the first to come to mind. People looking for homes ready to move into may not have considered online property auction as a viable alternative to Private Treaty. However, the selection of properties available MMoA are incredibly varied: family homes, city centre pads, and retirement havens are all regularly bought and sold via online property auction and are often in need of very little, if any, additional work.
Below are some examples of some of the properties that have been bought and sold via iamsold over the past 12 months:
Transparent fees provide peace of mind
It has historically been perceived that the upfront fees involved with online auction can put off prospective buyers. However, the truth is that the fees may be exactly the thing that attracts buyers who want added peace of mind. Buying through auction also requires a firm commitment from both the buyer and the seller upfront.
With Private Treaty purchases, sellers may decide to hang onto their property after all, or buyers may be gazumped by a higher offer. The fees with MMoA effectively lock in the purchase, which means that when buying or selling through auction, you are more likely to get people who are committed and ready to go. This reduces the chance of either party pulling out of the deal, ensuring a smooth transaction for everyone involved.
Property auction can be the route to the best price
Many people worry that going to auction means being prepared to accept a lower price for their property. While it is true that property auctions offer opportunities for buyers to snag a bargain, it is important to note that auction can, in fact, help sellers to get a more favourable price for their property. Auction offers a fully transparent buying process with visible bids, which gives sellers control as they can set a reserve price – and if the bids don’t meet the reserve, they don’t have to sell.
As well as control over the price, some buyers may be happy to pay a considerable sum for a property – because they’re getting security at the same time as the seller. Through MMoA, people can be safe in the knowledge that they aren’t going to get gazumped by other buyers, and they know that sellers aren’t going to back out at the last minute – both of which can happen in Private Treaty transactions. Both parties have that commitment, so buyers may therefore be willing to offer a higher price for peace of mind.