The number of bidders per property has steadily increased month on month, according to Offr, Ireland’s most used property transaction platform, which has released real-time data on the property market for the first time.
The data collected from January to June 2021 has found that there were an average of three registered bidders per property in January, compared to an average of six in June. Three hundred and thirty six property transactions nationwide were analysed, where 1,759 prospective buyers placed 5,036 registered offers over the past six months.
Seventy eight per cent of property sales conducted by estate agents through the platform exceeded the asking price, while just nine per cent of properties sold below the asking price. The gap between asking price and selling price is 14 per cent to 15 per cent on average. This is a strong indication of the present imbalance between supply and demand in the market. The Offr app acts to take the heat out of the process by limiting bidding to registered, approved bidders only. Even with this screening process in place, the results are very telling.
There is a linear correlation between the number of bidders and the final sale price achieved. Properties with two to three bidders sold for three per cent to 12 per cent over the asking price. Six to nine bidders saw sale prices achieved at 19 per cent to 30 per cent over the asking price. Twelve per cent of properties sold with more than 50 offers submitted.
For the first time, Offr has looked at buying patterns of private treaty properties, which account for the majority of transactions in Ireland. Sixty nine per cent of the properties analysed were sold by private treaty while 31 per cent were sold by online auction.
The average transaction value through Offr was €380,000, while the national average house price in Ireland is €276,000. This is reflective of the fact that 58 per cent of the transactions analysed are in Dublin and 42 per cent are in the regions.
According to Offr’s data, 30 per cent of people were cash buyers while 70 per cent availed of finance.
Offr allows prospective buyers to submit formal offers to estate agents from registered, approved accounts with ID and proof of funds, ensuring only genuine buyers can bid on a property. The system allows agents to display the offers on their website in real time, providing a new level of transparency to the market. This makes it much easier for genuine buyers to secure a property without having to enter bidding wars against ‘tyre-kickers’ or unproven bidders, while also ensuring that sellers get the best possible price, from buyers who are able to complete the purchase.