Online real estate auctions have become an increasingly popular way to sell real property in a slow economy as owners have become more aware of the benefits of selling with this method. Thanks to Ebay and other popular auction sites, buyers are more comfortable bidding online.

When properly marketed, an online real estate auction creates a sense of urgency, attracting qualified buyers prepared to compete to purchase the property. The faster selling cycle allows the property to sell at today’s prices, rather than waiting for a buyer to bring an offer. Since they have a defined selling date, auctions force buyers to act.

More good news for sellers: costs for an online auction are significantly less than the type of marketing campaign done to drive bidders to a traditional live auction. It is easier to bid than to write up a sales contract, and all negotiations are automated and done online. This simplicity and convenience makes it easy for buyers to participate, even long distance.

There are three ways to sell property with an online auction:

1)   Pre-bidding helps build the event. The property gets advertised in a “preview mode,” creating urgency for buyers to complete their due diligence, submit a written offer and get the property under contract prior to the auction. This way, they don’t have to compete with other bidders. The seller can accept a pre-auction offer, in which case the auction is cancelled.

2)   Online Bidding. At the conclusion of the online bidding cycle, the high bidder wins the property and puts it under contract as specified in the terms.

3)   The Post Auction Sale. If none of the bidders meet the reserve auction price, you can contact the list of buyers interested in the property, you can contact all of them and let them know the seller is still interested in their highest and best offers.

Real estate auctions are a proven way to bring in top market prices in the shortest possible period of time. Brokers are learning how to use the power of auctions to get motivate buyers, close more sales and get more listings. If you are a broker, you may be wondering how to introduce property owners to the idea of selling their home via auction – whether live or online. Many people only know and understand the traditional way of selling real estate, and the auction method of selling real estate is not for everyone or every situation.

Still, in today’s market, there are more prospects for auction than ever. Sellers who are interested enough to look past the old stereotype that auctions are only for distressed properties – and who look at the real benefits – may find in auction the most cost-effective solution to selling their home.

AUCTION BENEFITS