Internet Auction Technology Speeds Up Home Sales

eBay is now synonymous with online auctions - almost every web user has bought or sold something on eBay at least once (see the latest stats). Why is it so popular? Becuase it is quick and easy. This is the very reason why an Network E was developed - to make selling, and buying, houses easier. By using an online auction system to guide the transaction it can reduce completons to as little as 20 days.

‘Network E’ combines the speed of auction style transactions with the traditional house buying model, and Balgores Property Group - established for over twelve years - are one of the few estate agents offering this service in Essex.

The traditional method of selling property contains delays which results in some 30% of property transactions not completing leading to immense frustration and often wasted money. Network E provides an alternative method of house purchase catering to buyers and sellers frustrated at the slow pace of some transactions.

How Network E works

By speeding up the completion phase of a property transaction, it means buyers who are ready to buy because they either have no property to sell, or have sold it already, can proceed quickly.
The property is marketed in the usual way, which helps attract the best price possible, but it borrows heavily from the auction industry in that paperwork is ready immediately and a swift completion date can be set. This means a property transaction can complete in as little as 20 days, although the average is 49.

A leading property auction firm, Network Auctions, has developed Network E auctions and made it available to their partner estate agents across the UK.
Properties are listed on Network E auctions, and a closing date set. Upon the ‘virtual gavel’ falling on the sale, the buyer pays a non-refundable £3,000 deposit and then has five weeks to exchange contracts. If they don’t, they lose their deposit which is shared equally between the seller and the estate agent. This system differs from traditional property auctions where a contract is formed as soon as the gavel falls.

This switches the emphasis to buyers who are ready to proceed if they’re financially and legally ‘ready’ and gives the seller that option of a copper-bottomed ‘quick sale’ - or at least the knowledge they’ll get at least some money if things do fall through.

Electronic auctions

The advent of ‘electronic auctions’ has ushered in the Network E option - Internet bidding has been a feature of traditional property auctions for some while now - and Network Auctions expect to see an increase in the number of properties sold in this manner.

It’s ideal for sellers who might not want to go down the full auction route, but like the idea of a swift sale knowing the buyer has to be ‘serious’ as they are committing money in the form of the £3,000 deposit right from the start.

It’s also ideal for buyers who know, assuming they win the auction with their price, they won’t have to suffer the potential frustration and time consuming bidding wars with other potential buyers. If their bid is the highest when the auction hammer falls, then the property is theirs.

Group director of Balgores Property Group and a Fellow of the National Association of Estate Agents Martin Gibbon commented: “Network E drastically reduces the time it takes to exchange contracts and it gives potential buyers a great advantage”.

Author bio:

Martin Gibbon is the Director of Balgores Property, the leading Essex Estate Agents. Martin has been working in the industry since the mid 80's. When he is not selling properties, Martin enjoys spending time with his wife and children, fishing and supporting West Ham.