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TODAY'S OTHER NEWS

Controversial Modern Method of Auction claims “consumer confidence”

The largest player in the Modern Method of Auction sector says there is growing consumer confidence in the way the system operates.

Iamsold says it’s sold over £400m worth of property sold for agents and their clients in the first half of 2021. In that period an average of 42 per cent of properties sold over their reserve price. 

It also says it’s passed over a monthly average of £1.5m in fees to estate agent partners using the Iamsold system in the first half of this year.

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The MMA system has in the past been criticised for issues regarding the transparency of fees and scale of charges falling on the buyer; one former estate agent has set up a website with the aim of assisting buyers who have grievances about the MMA system.

However, providers of MMA insist the sector is now more transparent and Jamie Cooke, managing director of iamsold, says: <any of our agents’ clients are proactively choosing the Modern Method of Auction – something which has been growing over time but has certainly accelerated in the last 12 months. 

“The speed at which we can progress sales has proven extremely attractive to buyers and sellers, who are able to complete their sales within an average of 56 days. That, coupled with our 95 per cent success rate, shows that auction has a strong place in a booming property market.

“Consumer confidence and awareness of auction has boosted the number of total bids we’ve received this year to over 27,000, nearly three times as many in the same period last year and in 2019. This supports our agent network to feel confident when recommending auction to their clients, particularly in the current market.” 

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    The traditional auction route is FAR cheaper to vendors who face a choice of handing over c. 1% of their equity vs, say, 5% (can be higher or lower) via this route.

  • Richard Copus

    Orwell would be proud of I Am Sold. If anyone can turn white into black or vice versa it's them. Double speak, twisting facts around to read as they want - they are the masters of it. Of course the system works and makes loads of money for them and their estate agent "partners", but often at the expense of selling houses for less than they would otherwise fetch by charging buyers extortionate reservation fees which are built into the buyers' budgets and which reduce the number of bidders (you only have to delve into social media to see how many buyers won't touch MMA).
    I am very concerned that I Am Sold states that "over 42% of their properties sold over the reserve price" - a paltry figure and I do wonder if this is actually a typo. ALL properties have to sell above their reserve price by law in traditional auctions and they complete in 28 days - half the time.

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