16,500 Homes Sold By Modern Method of Auction Firm
iamproperty, parent company of iamsold, says it has sold 16,500 properties in a decade through auctions, and now works with 2,500 estate agency branches nationwide.
Modern method of auction is growing in popularity across the UK as a more buyer friendly option. It works like an auction on eBay, where buyers can bid on property online from anywhere in the world. The modern method of auction (MMA) grants a much longer transaction timeline, meaning the winner of the auction has 56 days to complete the purchase.
Newcastle based company iamsold employs 185 people and says it is on course to complete 4,000 auction sales in 2019. These statistics prove the ever-increasing growth of MMA. However, the use of MMA has come under some scrutiny.
The system has been criticised in the past due to alleged lack of transparency over the fees. Last year the Homeowners Alliance looked at the potential pitfalls of buying and selling by auction. They raised issues around reservation fees, suggesting that buyers are often stung by extra costs that they did not anticipate. iamsold responded to this criticism by saying that the “fees charged are made clear to all parties at all points of the transaction.” The service says they are working with industry bodies to boost standards in the MMA sector.
In the Spring, The Property Ombudsman announced it would insist that agents explain benefits and disadvantages of their recommended method of transaction at market appraisal stage. They said that one disadvantage of the MMA is that costs falling on the buyer may mean that the buyer would vary their offer for the property accordingly.
As well as possible disadvantages to the buyer, questions have been raised about what impact this may have on conveyancers. The 56 days given to the buyer to complete the purchase means that conveyancers will have to endure a twice as long transaction process.
Despite the scrutiny that MMA faces, iamproperty’s half year figures reveal that the company’s turnover increased by 16% to £12.6m. The service has also recently appointed former Managing Director of property service at Zoopla, Mark Goddard, as group Chairman.
As a Conveyancer, what do you think of this new modern method of buying? Does the longer transaction process pose problems?