Online property auction site launched

Buyers will be able to bid online for properties via a live property auction site introduced by Zoopla in  partnership with auctioneers Real Estate Disposition corporation (REDC).

The initial auction of around 150 residential properties will run over four days from February 11th, followed by regular four-day slots throughout the year.

To begin with the site will feature repossessed properties, but it will also be rolled out to estate agents across the country, allowing them to market the properties on their books in an alternative way, while still offering them to market in the usual way.

Unlike traditional property websites, Zoopla.co.uk won't charge estate agents for listing their properties and it will also offer them 0.25% of the sale price on top of their usual commission, so many may be attracted to the site in a market characterised by lack of supply, where speed of transaction is of the essence.

Properties may be added to the auction service up to 30 days prior to the auction commencing, during which period prospective buyers can arrange viewings via the agent and carry out due-diligence.

Estate agents and property sellers will agree a reserve price before the property is entered into the online auction and successful bids will be binding on the buyer, who must have their mortgage finance arranged in advance.

Only properties represented by estate agents, lenders and developers will be permitted on the auction platform located at Zoopla.co.uk/auctions. Private sellers will not be able to participate.

Alex Chesterman, CEO of Zoopla.co.uk, said:

"We see live online bidding as the future of property auctions and our innovative offering as one of the most exciting developments for estate agents in the UK for years.

"We are delighted to be partnering with REDC, the world's leading player in property auctions, and their expertise in online property auctions combined with the Zoopla.co.uk audience creates a unique and transformational opportunity for our agent members to maximise the price achieved, reduce the time on market and significantly increase their fee potential."