Online auctions saw a remarkable 35% surge in property sales last year. Check out more of our Auction Success stories in our yearly round-up.
2021: The year that transformed online auction
The past year has been a turbulent one for many and has urged companies to adapt to a changing world. For iamsold, 2021 has been a year that has allowed the Modern Method of Auction (MMoA) to grow in popularity and for our Partner Agent network to flourish. With everyone’s circumstances changing and the demand for more tech-savvy options, Agents are looking to provide their clients with more options and iamsold has helped to offer that. iamsold has seen record breaking results for properties sold via the Modern Method of Auction, raising over £804M in capital value in 2021. The outstanding results and growing popularity for the Modern Method of Auction can be credited to a multitude of reasons that reflect the changing property market
Why the Modern Method of Auction has grown in popularity
- Stamp Duty Tax
The Stamp Duty Holiday meant more people were choosing the Modern Method of Auction for property sales. The UK Government scheme to increase the nil rate band for a short period of time encouraged agents to use the Modern Method of Auction for its speed and ease during lockdown. The encouragement of sales during 2021 helped to increase sales for iamsold as agents wanted to get deals through quickly but many soon realised the Modern Method of Auction has many advantages and is a real solution for the future of property sales.
COVID 19 put a lot of stress on many businesses and the need to adapt and find solutions was integral to success. iamproperty’s ability to adapt with more digital methods and online services helped support the business in the past year and is a main factor for the recent growth of the company. The reactionary moves to tech enabled Agents to offer an alternative and safer option for their clients. While the Modern Method of Auction was the perfect solution to the pandemic, it’s something that will continue to grow in 2022 as it has been proven as a viable mainstream route to purchase
- Property availability
2021 saw a decline in properties available which meant Estate Agents had to adapt their tactics and the Modern Method of Auction was a great alternative to buying and selling properties. While many chose to use the Modern Method of Auction during unprecedented times, it has proven itself to be a beneficial option for all involved and something many are choosing to use instead of Private Treaty sales. The stock is set to remain low during 2022 and the Modern Method of Auction is set to remain a trusted resource that many agents will continue to offer their clients.
What this means for Estate Agents
The rise in popularity of the Modern Method of Auction not only benefits iamproperty but also the Group’s Partner Agents, with almost over £17M in fees paid to the network across the UK in 2021.
As the Modern Method of Auction grows, Agents are continuously seeking to offer choice to their clients as consumers become more aware of the growing benefits of the Modern Method of Auction. The auction specialist’s 12-month property sales represent an increase of almost 54% on the previous year for auction transactions
The Modern Method of Auction is proving a popular alternative that agents are choosing more and more. While many may have initially gone down the online route because of specific circumstances in 2021, Agents are now realising it’s a better suited option for many of their clients.
What this means for buyers and sellers
As well as agent advantages, buyers and sellers are starting to see the huge benefits to using the Modern Method of Auction. The speed at which sales can progress is hugely attractive to buyers and sellers. A 56-day* completion timescale is guaranteed from when the contract has been signed. This is much more appealing to buyers and sellers as the Private Treaty completion timescales are higher than they have ever been currently, with completion normally around double the speed offered by Modern Method of Auction.
The Modern Method of Auction also provides much more security for buyers and sellers with a 95% success rate. The increasing benefits mean Estate Agents are now able to offer alternative options to their clients to ensure the best service is chosen. Buyers and sellers are able to feel much more confident in the security of their purchase with a non-refundable deposit required once a bid is successful, this allows all parties to feel much more confident about the sale.
The want and need for online approaches to property sales is not only something that helps Agents, but it is a desire of many sellers and buyers. While some clients may be sceptical to the online world, as an Agent it is easy to explain the digital approach with iamsold’s accessible technology. Bidding activity is available online 24/7 to ensure properties can be auctioned efficiently.
The future of the Modern Method of Auction for Estate Agents
While a number of factors have clearly influenced the record breaking figures for iamsold, we are is dedicated to continuing the growth and success of the Modern Method of Auction into 2022 and for years to come.
Online auction helped accelerate sales during 2021 but it is a solution that will continue to live in the toolkit of Partner Agents. Continuing investment into making the Modern Method of Auction the best experience it can be will only cement it in mainstream Estate Agency services.
iamsold’s dedication to long term investment into tech in 2022 that not only works for Agents but also for clients by matching consumer demands and expectations.
As stock is likely to remain low, agents are going to need to rely on more advanced technology and the Modern Method of Auction could help to provide this. Buyers and sellers are looking for alternative options that can give them the best option when it comes to sales and are increasingly interested in the Modern Method of Auction.
As an Estate Agent it is important to give your client the best options for them and you but with the increased growth of the Modern Method of Auction, it is proving to be a big hit among agents and a viable option for a multitude of clients.
*Based on standard properties. From receipt of draft contracts.