Online auction specialist BidX1 has introduced a new feature in its sales model in which, rather than making the legally binding deal when the hammer falls – or, in this case, the auction expires – the seller will have 72 hours. to consider the best offer. Jonathan Fenn, director of real estate at BidX1 in Ireland, says his new ‘conditional’ (STC) model will give the seller more control over the sale and is like a three day window to be ‘agreement to sell’ in. a private treaty. transaction.
This, says Fenn, marks the evolution of his business because while many aspects of the real estate agency have evolved – think online tours, virtual tours, etc. – the traditional agreed period of sale can drag on, one or the other of the parties being able to withdraw after weeks or even months of work of lawyers, bankers, brokers, agents and surveyors.
The typical BidX1 process goes as follows: a property – commercial or residential – is put on the website with the usual information, often prepared by the seller, along with the due diligence and documentation required for an auction, available. for account holders. – reflecting the company’s stated desire for âtransparency, accessibility, information and above all integrityâ.
Interested parties register with BidX1, post bond (in the case of a four bedroom detached house at 78 South Park in Foxrock, Dublin 18, the first residential property to be sold using the new STC model of the company in Ireland, the deposit is â¬ 10,000), and make the necessary financial, topographical and legal arrangements for signature on site. Based on the interest in the data-driven model of BidX1, the seller establishes a reserve, and on the day of the auction, the auctions open for a specific time.
As soon as it closes, the highest bidder is linked to the sale and the down payments of the lowest bidders are returned, while the seller has a cooling-off period of three days. The potential buyer has an uncertain expectation, but, Fenn says, if the sale continues, the company is committed to closing and trading quickly, normally within 28 days. If the seller decides not to accept the highest bid, that person’s deposit is returned to him immediately.
According to Fenn, the method is already working well in South Africa and Spain, where real estate is difficult to value (the company also operates in Cyprus and the UK). The House Price Register records sales of two houses in South Park last year for â¬ 715,000 and â¬ 725,000; the guide price for number 78, which needs to be upgraded, is â¬ 625,000 and the auction is scheduled for June 10. Attempted ? Better to put on your skates; registration opens on June 3.