Real estate agent and seller in US have been trying the unconventional way (online auctions) to buy or sell a house since 2006. Let’s talk about the advantages and the disadvantages of selling your properties through online auctions.
Most people who have tried selling their houses have definitely tried some of the following methods to promote their properties.
- Online advertisement on a real estate related site
- Advertise on paper through the property classifieds
- List with a real estate broker
- Getting leads from friends and family to market your home• Hold open houses
However, there are always other ways one can get the word out about his home that’s on sale. eBay is one of the platforms that caught my eye. The site has a whole section devoted to real estate. This is prove that buying and selling houses via online auctions is gaining popularity in other parts of the world. However, the same cannot be said about the United States.
People now use auction sites such as rBuy, RealtyBid and eBay to advertise and get exposure. So why do most people go for these sites.
Pros of Online Real Estate auctions
Real estate online auction：
- Promote or market your house for sale. The best way to get your property out there is through these sites. The main reason why auctions exist is to advertise. If you want a true binding transactions then you will have to study all the legalities of the deal after the auction is over.
- Get global exposure. The auction connects buyers from all over the world. The site’s exposure and reach makes it possible to get some interest from far flung places. It is thus important to have an idea of how properties are like beyond your local area.
- Generate excitement by selling your house via auctions. An auction is always an exciting activity. People love bidding on the simplest things and pay a lot. So you need to ask yourself, what if your property is more substantial.
- You will find the cost of your house faster. The synergy created between buyers and sellers is what dictates the property values and not the real estate agent’s decisions and sentiments. So the worth of a home is what buyers and sellers agree upon.
- Real estate is the fastest growing area in online auctions. Most people are opting to use online auctions as a means of business transactions. This is a clear indication that property auction will soon be acceptable in the society.
That’s not all, sellers are able to find leads and gauge interest from potential buyers in a much easier way. Interested parties are also prioritized in this method and are also engaged for the next step.
- It’s a quick way to unload a property if you need cash fast. If you are a motivated seller who wants to unload a property then auctions will help you out. In most cases, they showcase homes that are being sold at big discounts. Sellers can benefit from RealtyBid which is an Alabama company associated with online auctions. This is simply the best place to check things out if you are looking for a 20% to 30% discount off list.
- It’s more efficient and transparent to negotiate via auctions in this platform.
Everything is always in the open for the buyer and the seller to discuss.
However, there are also several reasons why most people wouldn’t settle for this home buying/selling method.
Cons of Said Online Real Estate Auctions
- Caveat emptor. It is advisable never to take shortcuts when it comes to home transactions. Following through with house checks and contracts is equally important since like any other item you buy online, it’s always buyer beware.
- Sales are non-contingent. You should be comfortable with the fact that all sales are non-contingent prior to transacting through an auction. You need to understand that transactions are non-binding. This is the reason why you have to take your paperwork and contracts seriously after the auction is over.
- Limited time for property inspection. There are certain auctions that do not give you enough time during the home buying process. For instance, out of state properties may be time consuming to carry out proper inspection.
- You may not be represented or assisted by an expert. Most situations call for the assistance of a broker. But most people choose not to involve the services of a broker in the dealings. However, it may be hard to deal with issues that may arise with regards to the house in question without a representative. It is thus advisable to have an advocate if you decide to use an auction site.
- It is time-consuming to go to live auctions. You will be doing all the due diligence and spending some time checking out the properties you are bidding on if you decide to participate in auctions.
- You are subject to issues concerning an online auction community. You are vulnerable to fraud especially since you will be dealing with an online presence that starts off with less face to face contact. So if you decide to be a seller, you need to understand that auction related headaches will always come around.
The bottom line Online
auctions can be categorized as unconventional ways to secure or unload a property. However, this method is attuned to real estate investors who have less qualms about the present condition of homes and would want a more global view of what’s in the market.
Although online auctions are transparent, I would not be comfortable buying or selling a house through this platform. I would be interested to know how your experience was if you have tried a home transaction using online auctions. It would be interesting to know if your experience reflects what has always been said about this new way of conducting business.
Auction sites for real estates
Check out rBuy.com, eBay.com and RealtyBid.com, f you live in US. For those who are in Canada, check out Bidwin.org.