Fixed Price Estate Agency the New Norm in Ireland?
The days of paying an estate agent a percentage of the final selling price of the property are numbered according to Eddie O’Driscoll, founder and managing director of Auctioneera.
According to Mr O’Driscoll, Auctioneera provides everything a traditional estate agent does for a fixed fee of €1299+VAT. Onsite valuation, professional photography, 2D floor plans, Daft / MyHome listings, conducting viewings, negotiation and for sale sign are all included in the fixed fee.
This represents a saving of several thousand Euro compared to the traditional fee of typically in the region of 1.5-2%+VAT of the final selling price.
“If you take a property that sells for €250,000 a typical estate agent will charge in the region of €5,000 including VAT & outlays. We think this is just too high” says O’Driscoll.
There do seem to be pretty substantial savings on offer but is it too good to be true?
Not so argues O’Driscoll: “One man’s margin is another man’s opportunity is something that Jeff Bezos, Amazon founder says a lot and is something we believe strongly in. We feel the margins in the estate agency industry are just unsustainably high and we hope to be a force to drive these margins down and return literally millions of Euro per annum to Irish property vendors.
“We have already sold over €3million worth of property, thereby returning in the region of €40,000 to Irish vendors so far.”
Auctioneera also claims to have been the first to market with accepting offers for properties being sold by private treaty online on their website. “We have been followed of late by some of our competitors but we were proud to be first to market with that.
“With so much of our lives being managed online now, it seemed like a logical step to allow buyers to make offers online. All our vendors get a control panel that they can log into to monitor the current highest offer in real time.”
The transparency has been very well received by buyers and sellers with much of the bidding happening outside of traditional working hours, according to O’Driscoll.
With companies like Purple Bricks blazing a trail in the UK’s fixed price estate agency market, Auctioneera is certainly one to watch in the prop-tech sector.