Unreserved Inc. is a start-up in Ottawa whose mission is to bring more transparency in
the Canadian housing market by having online auctions rather than the current process
of blind-bidding rounds and bully bids that has not been a fan favorite in today's market.
All for 1% fee!
They have been able to host nearly 80 auctions for properties in and around Ottawa
since last July. The company has recently announced that they have raised $33.85
million from a group of investors. This group includes the merchant bank Intercap Equity
Inc., former Brookfield Real Estate Services Ltd. There is a lot of investor interest.
Canadian housing is at an all time high with record prices in many markets across the
country. Many people believe it is the practice of blind bidding that has contributed to
this problem.
Open auctions are not something new. They are a common practice in other
countries like Australia.
Unreserved Inc. held an auction recently where they were selling a two-storey detached
home in Barrhaven, a suburb of Ottawa. This auction had more than 2,700 people
watching the final moments in real-time and many were cheering on bidders from the
comment section. After 85 bids, with increment increases of $2,500, the winning bid
came in at $857,500 – 32% higher than the minimum bid point of $650,000!
Unreserved Inc. charges a 1% auction fee to sellers and takes the role of a listing agent
and charges much less than a traditional real estate commission which is 5%. The
buyers feel like they have a chance because of the transparency in the process. The
sellers can certainly still get a great market price with so many people interested and
watching the process. This looks like a win-win and a new idea that is here to stay!