Property technology firm iamproperty, which pioneered the modern method of auction (MMA), has become the latest member of the Open Property Data Association (OPDA).
Founded by Ben Ridgway and Jamie Cooke in 2009, the Newcastle-based business is a fast-growing proptech, with around 7,000 estate agents across the UK using its digital solutions to support the buying, selling and lettings processes.
The firm has championed the sharing of data across the property sector, collaborating with other firms in the Smart Property Data Trust Framework sandbox and hackathon events hosted by OPDA and the Digital Property Market Steering Group.
Chris Watson, head of data and insights at iamproperty, said: “From day one, iamproperty’s mission has been to improve the broken homebuying process.
“We’re passionate about making the property transaction process faster, simpler and more transparent for everyone involved, and we’ve seen first-hand the power of collaboration in driving meaningful industry change.
“Joining OPDA as a member is a natural next step for us. We are committed to supporting the development and adoption of open property data standards that can help reduce friction in the home moving process and deliver better outcomes for consumers and property professionals alike.”
OPDA’s growing network includes all six major high street banks, along with building societies, conveyancers, estate agents, technology providers and other property professionals.
The shared aim of members is to support the adoption of open property data standards and accelerate digital transformation in home buying and selling transactions.
Maria Harris, chair of OPDA, said: “We’re delighted to welcome iamproperty to OPDA at such an important time for the industry.
“Chris and the team have already made a valuable contribution through their involvement in the sandbox programme and hackathons, demonstrating a genuine commitment to innovation and industry collaboration.
“As we continue to work with industry and government to accelerate the digital transformation of the property market, having organisations like iamproperty actively engaged in the development of open property data standards is incredibly important. We look forward to working together to create a faster, more transparent and more connected home buying and selling process.”
One Response
The Modern Method of Auction undoubtedly has attractions. It can provide a faster timescale than a conventional sale and, unlike a traditional auction, gives mortgage buyers time to arrange finance. However, there are significant questions (that need addressing) about whether it is always the fairest way of allocating risk between seller and buyer.
The biggest concern is the non-refundable reservation fee. A successful bidder can be required to pay several thousand pounds, often in addition to the purchase price, before they have completed their legal investigations or obtained a satisfactory mortgage offer. A typical MMoA transaction provides around 56 days to exchange and complete, but if the buyer cannot proceed they can lose the reservation fee.
That creates a fundamental imbalance. The buyer can be financially committed before they know whether they can actually buy the property. Problems with title, searches, leasehold information, structural condition, mortgageability or matters outside the buyer’s control may only become apparent after the reservation fee has been paid.
Recent commentary has highlighted precisely this problem: a buyer discovered after paying the reservation fee that a property was effectively unmortgageable because of serious structural defects. The concern was heightened because the property had previously failed to sell for mortgage-related reasons.
There is also an important question about who really benefits from the fee structure. The seller may be told that the property can be sold without the seller paying a conventional estate agency fee, but the buyer’s reservation fee is effectively an additional cost of acquiring the property. That additional cost inevitably affects what some buyers can afford to bid. Consequently, a “free” sale for the seller may not necessarily produce the highest net price.
Most importantly, MMoA should not be confused with a traditional auction. At a traditional auction, the fall of the hammer creates a binding contract. Under MMoA, the successful bidder normally enters a reservation arrangement and only subsequently progresses towards exchange.