Many people are familiar with online real estate listings, but homes are also being bought and sold through online real estate auctions. A real estate auction is the same as any other product auction, except people are bidding on homes, commercial property, or large residential developments. The seller sets a reserve and bidders try to meet the reserve without going too much over the set amount. With an online real estate listing all a buyer can do is browse the different listings and decide what. With an online real estate auction, a buyer can actually register and bid on the property.
How an Online Real Estate Auction Works
A seller that wants to use an online auction will need to commission an auctioneer to manage the listing. The auctioneer will take pictures of the property and gather all of the necessary information about the property. They will then put it up on their website and begin the auction process. Unlike a real time auction where things are bid on and sold within a few hours, an online auction will start a few days before the auction goes live. This gives buyers time to review the auction listings and even visit the property if necessary.
The reserve price is often kept hidden, but auctioneers do try to give buyers a hint as to the price range of the reserve. They may list that the reserve is under a certain amount to help buyers gauge the amount of the reserve. A buyer will register with the auction site and view all of the necessary information. The contract is usually available to view online and then the buyer can place a bid. If the reserve isn’t met, the seller is able to pull the auction and list it with an agent or agree to sell it for a lower price.
When to Use an Online Auction Service
The best times to use an auction service is if you want to sell quickly and not have to worry about the management of selling the property, if you want to get a certain price, or if you’re selling an overseas property and want to sell as quickly as possible. You can also choose an online auction service if you’ve tried selling your Australian property for more than a year and haven’t had any successful bids. By using an online real estate auction, you can reach buyers that don’t normally peruse regular real estate listings.