The auction market has changed drastically with many business owners accepting that face to face auctions are in some cases, no longer relevant. But how and will technology advance moving forward, and will business models continue to adapt? Nathan Emerson CEO of Propertymark explores.
We are seeing new auction businesses coming to the fore that will never stand on the podium which is a massive shift compared to what was being seen pre-pandemic.
Around the world, using auctions to buy and sell residential property is hugely popular but, in the UK, we have historically lagged behind. However, that is now changing.
David Leary, one of our Advisory Panel Members for our auctioneering arm, NAVA Propertymark has provided his insight from the Essential Information Group as its Director. The group recently released figures stating that pre-pandemic in Q1 of 2018 only 65 out of 6,762 lots were offered online, this is compared to the staggering increase of Q4 in 2022 where 7,417 lots were offered online of a total of 9,166.
When speaking to David on the technological changes in the auctioneering arena, he said: “We don’t expect this trend to go away any time soon. We would now expect a rise in the quantity and quality of what’s currently being offered in terms of technology for the auctioneering sector as seen across all sectors especially after the COVID-19 pandemic.
“Auctions are no longer what they used to be. They’re savvy and moving with the times, and we’re excited to see where this change in technological advances takes us.”
Private offers
Mortgage interest rate rises, and the stamp duty holiday continue to drive more buyers and sellers down this faster route of sale and with that, the demographics of bidders also appear to be shifting. Historically, auctions appealed more to investors and property developers, but this imbalance has reversed with would-be homeowners rushing to take advantage of the stamp duty holiday and secure their mortgage rates, wary of further increases.
The digital era has had to and continues to enhance and transform to this shift with agents using innovative end-to-end systems. The development of tools that introduce technology not only enables users to book viewings, upload proof of funds and download legal documents, but also allows buyers to make private offers and bid in auctions. These are now at the fore in the marketplace.
As an organisation, Propertymark is perfectly placed to feed in our membership’s thoughts and opinions across the whole buying and selling spectrum and we continue to work with leading innovators in the technological field to help shape and encourage new PropTech to the industry.
If you’re interested in shaping new evolving PropTech for the auctioneering industry by arming us with real information in our further discussions, please feel free to email me at nathan@propertymark.co.uk.
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