With the world leaning towards a widespread digital environment due to the advances in technology and an ongoing global pandemic, many businesses have adapted to the new norm.
While online real estate auctions have been around for some time, what was once an optional method of doing business has become a necessity that also comes with the challenges of providing the market with a new convenience level and providing quality remote access to people hoping to purchase the property of their dreams.
How does it work?
There’s not much difference between in-person and online auctions because the main concepts and processes are just similar, except online auctions are done remotely.
During online auctions, there are no crowds and the only people in the room or on the property is the auctioneer and an agent representing the seller, with the proceedings conducted using a video camera and other equipment used to live-stream the event.
Not only is it convenient for bidders, but it also provides safety and comfort from getting into a noisy and competitive environment such as an in-person activity.
Sellers also can observe the live-streamed auction and follow the bidding process in real-time.
How to register and join an online auction
Auctions are generally announced and advertised before the scheduled date through real estate portals or online auction platforms.
Registration can be done on the portal or platform where it is posted and may require certain documents or other pre-requisites to qualify, so make sure to read through the information provided on how to sign-up and receive details for the auction event.
Is the bidding process different?
The process is the same, except the in-person interaction is removed and every bid happens online. While there are people who are more accustomed to the traditional in-person process, online auctions do provide a greater level of security, safety, comfort, and convenience that an in-person auction could not totally achieve.
What are the benefits of online auctions?
Not many people are aware that online auctions provide a lot of benefits, one of which can guarantee a sale.
Bidders are less pressured to make an offer compared to an environment where they often feel more pressured to bid at any given moment. Online bidders are more capable of being level-headed and can find time to make smart decisions without the pressures of heightened emotions.
Also, since bidders do not see or cannot gauge other bidders, they tend to bid more to avoid the fear of missing out which can help sellers get better bids.
Which one is better: traditional or online?
Regardless of whether it is a traditional or online auction, the success of every auction depends on the skill of the auctioneer and the agent.
It boils down to how the auctioneer and agent manage and handle the auction, the better they are, the greater the chances of the property getting higher bids than expected and getting sold to the best bidder.