Outsourced auction management provider IAM Sold saw a record-breaking first quarter of the year with 854 lots sold, and £96m total capital raised.
This compares with 632 lots and £69.8m capital value for the same period in 2017.
Buy-to-let investors were slightly more active than IAM Sold typically sees, accounting for 56% of the total sales during the period. Owner occupiers accounted for 41% and 3% of sales went to purchasers looking to renovate and re-sell.
More than one-third (36%) of the properties achieved prices in excess of the reserve. The highest jump was for a property in Bradford with a reserve of £60,000, which sold for £125,000 (a 108% increase).
Jamie Cooke, managing director of IAM Sold, said the sales growth had been driven by the rapid increase in the number of estate agency branches it works with. This now stands at 2,200 branches across the UK, up 40% year on year.
“Market conditions in the residential space are working in favour of auctions,” said Cooke, pointing to softening activity in the private treaty market. “We give our partners the ability to offer another solution to their clients. A lot of vendors want options.”
More than 90% of IAM Sold’s sales use the “modern method of auction”, which is conditional. Its completion rate is 96%.
“We aim to exchange in 28 days and complete in 56. Our average completion time is 44 days,” Cooke said. “Due to the security element, the modern method is enabling some of our agency partners to reduce their withdrawal rates, which are currently on the rise in the private treaty market.”
Online sales make up a significant part of the business: 50% of properties are marketed for online auction.
“The remaining 50% are affiliated to an auction event, but very often they will be sold online before the event. We advise clients on whether or not to wait for the auction room,” Cooke said.
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