Is this the end of the public auction?

THE online revolution is causing a huge shakeup of the property sector both here and in the UK. Bets are on that in five years’ time the industry will be completely unrecognisable. Every part of the sales and rental transaction will be web based, in some shape or form.

Allsop, for instance, entered the Irish market in 2011 and successfully introduced the idea of large multi-lot auctions — which had been commonplace in the UK for many years. The bulk of these auctions were for the disposal of distressed assets for banks, receivers and funds. Now Allsop has announced that it doesn’t intend to hold any public auctions at all in 2017. The plan is to hold 11 online auctions. The first, launched last week, comprises of 180 lots and takes place on February 23.

According to Rob Hoban of Allsop: “This move is as a result of direct feedback from bidders.” Will large public auctions become a thing of the past?

Anyhow, it is a clear indication of where the market is headed: online, whether for private treaty or auction properties.

BidX1 will provide the technology for Allsop’s future online auctions and they also have an attractive new offering which is being rolled out for private treaty sales which is a potential game changer: an online closing tool that’s a hybrid of the auction and private sale method. It works as follows: once interest is confirmed in the property, the interested parties register online and lodge their deposits. Potential purchasers can inspect the contracts. Bidding commences on a particular date and bidders can see the other bids that are being registered. Once the reserve is reached, the property is sold to the highest bidder and the deposit is paid over.

A binding contract is then in place which is forwarded to the respective solicitors within minutes. Unsuccessful bidders get their deposits back. My bet is that this hybrid will prove very popular because it gives both the purchaser and vendor certainty in a private treaty environment.

Over 90pc of property sales here are conducted by private treaty. The above process is transparent and eliminates the archaic ‘booking deposit’ system which has existed for decades and has driven vendors, purchasers and agents alike bonkers (including your truly) because it’s non binding.

Allsop’s Robert Hoban, who also happens to be managing director of BidX1, says, “50pc of Allsop’s sales in 2016 were online. This new product will reduce the time it takes to sell a property by up to 50pc.”

Anything that makes the sales process more efficient is a plus.