First online auction for selling off-plan property launches

Allsop has developed the first online auction dedicated to marketing and selling off-plan property.

The recently launched ‘New Homes Online Auction’ streamlines the process of selling new-build property and enables off-plan developments to be sold solely online.

This method has been designed to be user-friendly and offer an equal, fair and transparent way for buyers, UK or overseas, to purchase new-build property.

The launch follows a trial with a development in West Drayton by developer Clearview Homes. As well as attaining a 100% sales success rate, it generated over 28,000 hits to the auction and developer websites during the campaign.

Simon Capp, Partner at Allsop, said, “Our service enables developers to strategically and cost-effectively target UK and international buyers. The overriding strategy is simple; it gives buyers direct and easy access to buy quality product. And, as the biggest auctioneer of UK real estate, we benefit from a substantial infrastructure and ability to provide extensive marketing exposure in the UK and the overseas markets.

“We anticipate this service will be of interest to developers looking to sell product that is new to market, off-plan and in strong, urban locations. With online auctions already forming a mainstay part Allsop’s Irish business, we foresee significant growth in the online auction sector.”

Focusing on one scheme at a time, Allsop will launch and promote each development with a four-week marketing campaign, giving prospective buyers the time they need to learn about the project and complete a registration process to bid.

As the final price is set by market demand, buyers benefit from the knowledge that there is no hidden discount margin and, for developers, it’s an ideal way to benchmark values or identify buyer uptake of certain unit types.

On the auction day, buyers will have a minimum of 24 hours to bid, with options of bidding by proxy or placing a maximum bid, so they don’t need to be tied to the computer screen.

During the auction, properties time out one-by-one in succession, giving buyers time to identify alternative properties if they are outbid on their initial choice. An ‘immediate buy’ option can also be incorporated to appeal to buyers who may not wish to bid competitively.

Combining auction law and a tailored legal framework, the service delivers legally exchanged deals on the fall of the virtual hammer. This is facilitated by the gathering of buyer information, such as proof of address and identity, as part of the registration process. Buyers also provide a bidder security deposit by credit card, chargeable only if the buyer is successful.

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