Transparency and trust in the bidding process can be achieved through the use of online technology, says the founder of technology start-up, Offr, Robert Hoban. Auctioneers regularly say that online bidding will not replace the auction room for sales of farmland, but Robert says after selling 6,000 properties from the rostrum, online bidding is definitely the way forward. The Dubliner cut his teeth in the country homes market at the start of his career, working with Hamilton Osbourne King. When the economic crash came, Robert was one of three auctioneers selling houses with Allsop Auctions which has since become BidX1.

“I used to sell 200 properties a day from the rostrum in the RDS. Online auctions became more popular with buyers, they found it more convenient to bid on their phones than go in to town. But only 5% of properties are sold through auction,” Robert tells Irish Country Living.

In the figure above, Robert is talking about the residential market. By way of comparison, Irish Farmers Journal figures show that just under 30% of the farms placed on the market in 2019 were offered at auction. Of those that went to public auction, 54% sold under the hammer.

He said that people embraced the idea of submitting bids online and having all the documentation done online. The idea behind Offr was to create an online platform that would not only host auctions, but also private treaty sales. Offr connects the estate agent to solicitors and banks to digitise the entire end-to-end sale process. It was launched in Ireland six months ago and Robert says that 50 estate agents have signed up to use it.

“People can submit their offer on a property subject to certain conditions such as getting a mortgage or sale of their own property,” Robert said. “Normally when a private treaty sale is agreed it can take over two weeks for the documents to be signed by the vendor and the buyer. With Offr, it can be done in three minutes.”

Transparency

Just over half of Irish adults think that “fake bids” are a common problem in property sales in Ireland, according to research carried out by Amarach that was commissioned by Offr. In fact, 83% of people have no confidence in the buying and selling process in Ireland and 50% ranked ‘improving transparency’ as the number one thing they would ‘fix’.

According to Robert, Offr removes any issue with fake bidding entirely as all registered offers appear online for both sellers and buyers to see. Sellers can track the progress of a sale on their mobile device or laptop, in real time. They will be instantly alerted when an offer is received, if there is an upcoming viewing or if legal documents have been updated. Similarly, buyers can book a viewing online, upload proof of funds and ID, make an offer, pay a deposit, connect to their solicitor, and sign contracts.

Estate agents that are using Offr will have its logo at the top of their website. Robert says it also gives them more control over the process. In an auction scenario, the estate agent can see if a bidders internet connection has dropped and can wait to see if it comes back or ring them.

“Our technology provides comfort to the buyer and vendor. You know the buyer is real and has money. They have to upload government ID and proof of funds, so it eliminates tyre kickers.”

Sold

In one instance, Robert, said that someone bought two properties through Offr while on an aeroplane. Sherry Fitzgerald John Rohan sold an apartment block at Poleberry, Co Waterford for €580,000 on 24 March through Offr. According to Robert, it was the world’s first property to be sold with everyone involved in the process working from home. The bidding all took place on the agent’s website, there were 29 bids from 13 bidders, selling for well over the guide price of €380,000.

Meanwhile, Sherry Fitzgerald Brady O’Flaherty in Maynooth sold a bungalow with stables on four acres through Offr on 28 April. Guided at €575,000, the property at Macville, Kilmacredock Upper, sold for €600,000.

A spokesperson for Brady O’Flaherty said the auction attracted a worldwide audience, with over 80 parties viewing from both locally and indeed further afield, including the UAE and Australia.

“We are absolutely thrilled with the result which is clear and positive reflection of the property market in north Kildare, even at these most changeling of times for everyone,” said auctioneer Eamon O’Flaherty. “Online auction platforms and virtual viewing will be very much part of everyday life in the property market in the months ahead, with ongoing restrictions in place. I am, however, very confident the market will hold it’s own in this area, given the distinct lack of supply of property and the current demographics in our region.” CL