An online property auction house is to launch a pilot this month, offering incentives to estate agents who sign up.
Bamboo Auctions will act exclusively through estate agents, only accepting listings through them. Exchanges will take place on the fall of the virtual hammer.
The business will not charge a buyer premium.
Founder Robin Rathore, a lawyer with property expertise, told Eye: “This differentiates us from other online auction houses, as does the fact that on our site, exchange occurs immediately at the end of the auction period.
“This is in contrast to other online auction houses which operate using the conditional method of auction and charge a buyer premium.
“Sellers are not charged to list either.
“We only accept listings from estate agents and our revenue stream is from charging a percentage share of the commission that the estate agent charges the seller.
“Our fee is substantially less than offline auction houses, who often charge up to 50% of the estate agent’s commission.”
Rathore said that estate agents would benefit in a number of ways: “As exchange is immediately at the end of the auction period, agents earn their commissions faster.
“In addition, there is no need for negotiations or taking sealed bids, so agents’workloads are reduced.
“Another advantage is that we jointly market listed properties nationwide and to our own database of buyers (that includes international buyers), and therefore agents increase their marketing reach.”
He added: “The online auction platform is a value added service that can differentiate agents and attract more sellers.”
The new service will work entirely online.
Sellers and agents can set a reserve price and choose the length of the auction period for each property listed on the website.
Buyers are pre-approved for identity and anti-money laundering purposes. They will be able to search, download legal documents, arrange site viewings and place bids on properties.
Legal packs can be provided centrally by Bamboo’s team of lawyers, who can also assist with the exchange process.
Rathore said immediate exchange will be achieved through all bidders having been checked out first.
Before they place a bid, bidders must input payment details and details of their solicitor.
The winner bidder is charged a holding deposit of £5,000, held on behalf of the seller.
The buyer has five business days to transfer the remaining 10% of the deposit. If this is not done, they forfeit the holding deposit.
The new business is backed by Faisal Butts, business partner of ex-dragon James Caan, as part of the Pi Labs incubation programme. Pi Labs is the branchild of property firm Cushman & Wakefield together with Spire Ventures, Butts’ spin-off from Hamilton Bradshaw Real Estate.
Butts already backs several property ventures including eMoov and Ivygate estate agents.
Bamboo Auctions also has a team working on it that includes Chris Brown, a past president of both the NAEA and NAVA (the National Association of Valuers and Auctioneers).
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