Online auctions challenge the real estate market
Are online auctions the answer to a declining real estate market? Lloyds Online Auctions has seen a surge in online bidding leading to a string of sky high above-reserve sale prices, the latest being an investment property on the NSW Central Coast sold for $1.5 million, more than $300,000 above reserve.
The online auction of the investment property, which was in the hands of receivers, made a very compelling case for the online auction model for real estate, after local property was listed two times with traditional agents, which resulted in no sale of the property.
When Lloyds Auctions listed through its online auction platform, the property sold in less than 60 days and achieved more than 25% above reserve price, outperforming traditional methods of property sales.
“We have seen our online auction platform and client database grow significantly across a wide range of luxury and passion investments over the past 2 years with a massive shift towards buying in online,” said Mr Lee Hames, Chief Operating Officer of Lloyds Auctions.
“Due to the variety of products we offer through our online auctions, our customer database is not only massive but very active. We have millions of people across the country browsing and buying anything, d ‘a superyacht to a classic car, a Rolex or a pink diamond,’ Mr Hames continued.
Lloyds has been very nimble throughout the COVID-19 period, where passionate investing has become very popular due to cash-in buyers no longer traveling and spending their time at home.
With interest rates on the rise, Lloyds Auctions has certainly created waves in the property market by catching the attention of the country’s leading financiers.
“I would strongly recommend considering the services of Lloyds to any lender who is required to sell properties in forced sale situations,” Mr Stewart Wilkinson, Director of Blackbird Capital
Blackbird Capital, through agents for mortgagee-in-possession Hall Chadwick, has appointed Lloyds to sell the Central Coast development site online.
“What attracted Blackbird Capital to Lloyds Auctions was their unorthodox approach to property sales, and we are extremely impressed with the outcome on the property.” said Mr. Wilkinson
“We work with brick-and-mortar estate agents as another tool to help agencies move stale properties,” Mr Hames said.
“The benefit of our online auctions is that they allow buyers or sellers to deal with our team locally and buy or sell nationally,” Mr Hames continued.
The auction house, well known for breaking classic car sales records and is Australia’s biggest seller of fine art, is now challenging the traditional model of selling real estate, showing that online real estate auctions are a very effective way.
Lloyds Auctions has several properties listed on its website.
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