In a recent survey by Propertymark, online auctions have emerged as the preferred method of sale for NAVA Propertymark members.
The report revealed a significant increase in the number of online (not live) auctions, with 76% of responding auctioneers confirming the shift. This change underscores the evolving technological landscape and the long-lasting effects of the pandemic.
The study also indicated that live stream auctions have surpassed ballroom auctions in popularity. The tight competition suggests a possible gradual shift away from traditional ballroom auctions.
The rise of online auctions aligns with the impact of the pandemic and the benefits they provide, including cost-effectiveness and inclusivity.
Despite the surge in online methods, in-person viewing of lots for sale remains the most common practice among auctioneers. This quarter saw still imagery surpass video in popularity.
However, with 97% of auctioneers continuing to offer in-person viewings where possible, it’s clear that the chance to see lots firsthand is not yet replaceable by imagery or video.
The report also highlighted significant challenges facing auction professionals. Among the primary issues is the struggle to secure payment from buyers post-auction.
Non-payment not only increases the administrative load for auctioneers and vendors but also potentially exposes non-compliant buyers to legal action.
Settlements can exceed the original purchase price, underlining the need for buyers to understand all the costs involved in buying at auction.
Nathan Emerson, CEO of Propertymark, commented on the findings: “Online auctions, especially non-live formats, have overtaken traditional ballroom auctions, signalling a potential long-term shift away from in-person auctions.”
He also noted the issues related to post-auction payments: “Non-payment not only ramps up administrative burdens but also poses the risk of legal repercussions for purchasers.”
