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  • Northside East

Is a fixed price model the future of auctioneering in Ireland?

Friday, 16th November, 2018 3:20pm
Is a fixed price model the future of auctioneering in Ireland?

Helen O’Keeffe and Eddie O’Driscoll, co-founders, Auctioneera

Is a fixed price model the future of auctioneering in Ireland?

Helen O’Keeffe and Eddie O’Driscoll, co-founders, Auctioneera

Is a fixed price model the future of auctioneering in Ireland? One Dublin based company certainly thinks so.

Auctioneera, a fixed price estate agency based in Dublin, claims to be revolutionising how property is bought and sold in Ireland.

Eddie O’Driscoll, founder of the company, said: “Historically, property vendors have had no option but to pay an auctioneer several thousand Euro to sell their property. Most vendors probably knew they were overpaying but what choice did they have? The answer is none, until now.”

The traditional model of estate agency is that the property vendor pays the auctioneer a percentage of the final selling price of the property, typically in the region of 1.5 percent (plus VAT at 23 percent). However, as property prices in Dublin have taken off again, this has led to something of a bonanza for estate agents. For example, a property that sells for €300,000 will often generate a selling fee of in excess of €5,000 for the agent. Mr O’Driscoll said that this seems like a lot when you consider the work involved.

“One man’s margin is another man’s opportunity,” he added.

Mr O’Driscoll says his background in the cut-throat business of online retail means that tight margins are not new to him and don’t frighten him.

“We just think the amount of profit being made by traditional fee agents is far too high,” he added. “Vendors want an alternative and we think we offer that.”

Mr O’Driscoll may be onto something if the UK market is any indication as to how things will progress in Ireland over the coming years. Over there, vendors have been steadily voting with their wallets away from high street, high priced agents to lower cost, fixed price offerings from companies like Purple Bricks, Doorsteps, Tepilo, Emoov etc.

Interesting times lie ahead in the prop-tech industry, it would seem.

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