Zoopla update us with their online live auctions

It is now two months since Zoopla launched live online auctions. So, we asked them how it is all going. Here are our questions and their replies.


What’s the latest?

We have now held a number of successful online auctions every two weeks since launching in mid February, with bidding opening on Thursdays and final bidding closing on Sundays. Given the success of these initial events so far, we will be moving to hold the auction every week in the near future.

With over 50,000 visitors every week to the auction section of our website, we have been delighted by the response so far and the exposure we are providing for these assets is unrivalled by any other auction event that we are aware of. We have registered over 5,000
potential buyers in the first few events alone – enough to fill quite a few ballrooms – with buyers bidding from the comfort and privacy of their homes/offices.

We have seen a significant broadening of the profile from the typical auction bidder. Property auction room attendees have generally been restricted to investors and professionals; however, the online model is now also bringing in the average buyer without fear of being out of place in a room full of pros.

We believe we have clearly answered the question of whether Brits are prepared to purchase property online. The properties we have sold so far in the first few auctions range in price from £30,000 to £300,000 and in type from terrace houses in the North to loft conversions in the South. And bidders have covered the spectrum from first-time
buyers to seasoned investors.

Our model maximises the efficiency for buyers, sellers and agents. Sellers get properties listed immediately without the cost involved with offline auctions and get exposure to a far larger audience, hence maximising the price achieved. Buyers can now get access to auction properties with no restrictions of geography or needing to attend an event and can enjoy certainty of outcome. And agents not only earn their normal fees for properties that sell via our auctions but also earn an additional 0.25% of the purchase price as a referral fee from Zoopla.co.uk and are able to offer a unique, additional route to market to their vendors.

We are extremely encouraged by the results so far and as we now start to widen the offering to our member agents we are excited by the potential to deliver the additional revenues to their business. At approximately £500 of additional income for agents with each property that sells via our auctions, this can be quite a game-changer in terms
of branch profitability.


Stock is largely repossessions?
So far, the majority of inventory in the auctions has been repossessions. This is purely because we have initially focused on getting lenders on board with typical auction inventory first ahead of broadening this out and opening it up to agents and developers. Our member agents can now opt any of their listings into our auctions without any additional cost as a new and unique way of marketing on behalf of their vendors.


With agents able to set the reserve price on behalf of their vendors and our ability to hold auctions as frequently as we do, it makes a lot of sense for agents to offer this route to their vendors, especially those who are motivated and looking for a speedy, certain
sale. And agents can continue to market the properties in their normal way, so the auction route is simply an additional route to market, which can result in both maximising the sale price for the vendor and earning a much higher fee for the agent.


What is site traffic like?

We are getting over 50,000 visitors to the auction part of our website, resulting in over 250,000 page views weekly, demonstrating a high level of engagement.


How many buyers are registering per sale?

We are currently registering around 1,000 potential buyers for each event and this is growing with each auction and as we increase our marketing.


How many properties are in a typical auction?

Currently between 80 and 100 properties are being listed in each auction event. We expect to grow both the number and the range of properties offered over the coming weeks as we work with more and more lenders, agents and developers to get their listings into the online auction events.

How many properties are typically sold?

So far, we have sold over 100 properties for our clients in the first few events alone, either directly in the online event or in the lead-up. And one of the great advantages with the model is that given the frequency of the events, any unsold lots can be simply entered into the next auction.