Redefining auction: The shift from ballroom to online

Long before Covid-19, online auctions were growing in popularity versus in-room auctions, and the pandemic has only hastened the transition. As digital transformation sweeps across sectors, it was just a matter of time before the residential property industry followed suit in making the moving process more digital to better suit the needs of buyers and sellers. Understanding how this transformation has ignited a thriving online auction market is key to mapping the future of home moving for vendors and estate agents. Auction market growth UK house prices have been on an upward trajectory this year, and auction is no exception to this trend, as we have seen through Modern Method of Auction (MMoA) sales continuing to break records and reach new heights. Estate agents can take advantage of these market conditions and the growth of alternative methods of sales, including auction, in order to stand out from their competition and get paid faster. Today’s consumers are used to having a lot of choice and this should be extended to the residential market, with a choice of method for buying and selling property that meets individual needs and circumstances. Adding auction into the mix gives buyers and sellers wider choices and helps estate agents be competitive and win more instructions. Digital enhancements transforming auction The industry’s response to Covid-19 has modernised the buying and selling process by around a decade, and continued innovation is needed to further drive improvements to the home moving experience for everyone. With Rightmove and Zoopla now listing auction properties alongside usual Private Treaty sales, auction has been established as a reliable alternative to traditional sale methods that buyers and sellers can trust, as well as a tool to drive revenue increases for estate agents. As the market shows no sign of slowing down, combined with consumer awareness and confidence in auctions sitting at an all-time high, there isn’t a better time for agents to get involved. Diversifying auction properties The range of properties we’re seeing coming through from our partner agents and successfully being auctioned is growing, proving that auction is suitable for any type of property. So far this year, we’ve seen an influx in higher value properties coming to the auction market, with millionaires amongst the growing list of savvy sellers seeking out auctions to maximise their home’s value. Our highest value property so far this year sold for £1.6m and this uplift, paired with the growth of auction sales, has seen a spike in the Capital Value raised on behalf of vendors more than doubling compared to summer last year, increasing by 64% from June 2021 to June 2022 (£107m). Dawn Towse, director at Quick and Clarke Estate Agents, said: “It is always essential when valuing all properties that we look at the most proactive way to market. Each client is different and it is understanding their individual needs that enables us to guide them through with their preferred route. “MMoA is a superb way to create nationwide coverage and also provides security to the seller and the buyer, once a sale has been agreed. From selling smaller properties to high end properties in East Yorkshire, we have had great success with the MMoA and our clients have been equally delighted with the speed, the level of service and of course the results.” Julie Hughes, branch manager at Tom Parry Harlech, added: “For sellers, one of the main benefits is the security of the auction, knowing that if they get an offer it is going to go through. I used to believe the misconception that auction was only suitable for older, run-down and low-value properties, but it’s definitely not the case..” The future of auction Estate agents are selling more properties at auction than ever before, with 3,857 already sold, up from 2,997 at the same point last year. MMoA is dominating the auction space and it’s an area we’ll continue to drive innovation around. There will always be a place for ballroom auctions, but online auction is where estate agents are seeing growth opportunities and are seeing more engagement from consumers who are willing to try it.

Redefining auction: The shift from ballroom to online

Jamie Cooke, managing director for iamproperty’s auction service iamsold, explores the transformation of auction from the ballroom days to the boom of online auction

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