The increasing trend toward online property auctions is a consequence of the wide-ranging advantages all the participants receive. It enables buyers to participate in the auction from any location in the world. It is a sales method offering transparency and security and in a world dominated by the COVID-19 pandemic, with restrictions on public inspections and traditional auctions, the real estate industry has been quick to adapt.
With its ease and convenience, the digital environment has proved to be the ultimate platform for real estate auctions. It is a suitable platform for any property including house or land, commercial or residential.
Buying or selling real estate through an online auction helps all parties establish a true market price for any property, using the online bidding platform. It has proven to be a particularly fair way to conduct property transactions. The process is designed to work in the favour of all parties; the real estate agent, the seller and the buyer. The online auction process enables qualified buyers to openly negotiate on the price. The advantage is that everyone knows exactly how many genuine competing buyers there are.
Potential buyers register on the online auction platform that will host the event. They can do this right up until the start of the auction, once they have had their terms accepted by the vendor. These terms can be more flexible, including the proposed settlement date, the amount of the deposit and finance conditions, which widens the scope for more buyers to compete for the property.
Qualified buyers are permitted to start bidding even at the start of the defined campaign period. The bidding process is exactly the same as a physical auction, and all bidding is visible. The price transparency, and knowing how many other buyers there are, helps ensure that the sale price will reach its full potential. The final bidding stage countdown clock resets with every new bid, so each purchaser has the opportunity to improve their offer.
The online real estate auction is conducted the same way as face-to-face auctions are run but they occur in the virtual environment. There are no crowds, just the safety and convenience of being able to participate in the comfort of your own home or office. All participants, agents, vendors, buyers, can follow the interactive bidding occurring in real-time.
The auctioneer conducts the bidding process and is ultimately able to control the direction and outcome of the auction. They can suggest increments to rise by and can accept or deny bids during the process.
A great advantage of an online property auction is the reduction in pressure on the participants since it is conducted in the privacy and comfort of their chosen environment. They can also have advisors present and may be better placed to make better decisions. Online real estate auctions can prove to be very efficient and bring great results, however, the success of the process ultimately rests with the skill of the agent and the auctioneer, just as it does with physical auctions.