According to iamsold, the auction arm of iamproperty, currently, the Modern Method of Auction offers a completion rate of 95% compared to the 70% rate of Private Treaty, making the method of sale attractive to vendors searching for a more secure way to sell their property.
Although rising costs and interest rates have led some new movers to pause their plans, buyer demand is still there and 20% higher than pre-Covid markets. However, with changing circumstances impacting fall-through rates, auction is supporting Estate Agents to help vendors complete, while securing their own sales pipeline. iamsold showed resilience through the pandemic and now, as Estate Agents take on a new set of challenges, sales via MMoA have continued to rise, with an increase of 55%.
Jamie Cooke, Managing Director at iamsold, said: “As the cost-of-living crisis continues to impact the market, mortgage products fluctuate and buyers challenge sale-agreed prices more than ever before, we are here to help Estate Agents. We’re working with our Partner Agents to help them to revaluate transaction strategies to push sales through even as the market cools. Vendors and agents have the same goal. Vendors want agents to get them moving with a secure sale, while top priority for agents is locking in sales for their branch and winning more instructions.
“Auction plays its part in any market, but its benefits are especially valuable at the moment as the method delivers speed and security for everyone involved. Selling via MMoA reduces the risk of sales falling through, gives vendors access to a wider range of motivated buyers, helps vendors secure the best value for their property with a competitive bidding environment and gets vendors moving faster with 56-day completion timeframes.
“MMoA isn’t just helping vendors to sell, it’s also helping agents to navigate the market and boost their business with faster 7-day payments, a protected sales pipeline and less transactions where they don’t receive a fee. With fall-through rates increasing, we’re also working with our Partner Agents on establishing a process for fallen-through properties, offering auction as a method to secure sales. With changes in government likely to lead to a further shift in the market, we’ll continue to adapt to support agents and vendors to meet their goals.”
James Perks, Senior Branch Manager at Miles and Barr, added: "With the current average transaction selling via Private Treaty taking over 150 days to exchange, being able to offer our clients an alternative solution (circumstances permitting) to complete their sale within 56-days is a win-win for all parties concerned. Nearly 1 in 3 sales agreed nationally will fall through. Via the modern method of auction this statistic falls to less than 1 in 20 in our experience. Who wouldn't want less aborted sales?”
