Over the last five years, more and more people have started to make purchases via online auction houses, with property being one of the most popular choices. Whilst the vast majority of properties continue to be purchased via traditional routes, online auction houses come with a lot of great benefits.
You may have already seen foreclosed properties being sold by auction right in front of the county courthouse building. You might have already seen promotional materials offering the details of a sale in some grand building, whereby which many other buildings will be auctioned off.
There are plenty of people who prefer to attend a live real estate auction in person, who are more comfortable with a practical setting. However, the convenience and ease of online sales is growing rapidly. The following advantages to online auctions might explain why this is the case.
We have lost count of the amount of times that we have heard clients talk about having purchased properties at home in their pajamas. For millions of eager buyers, all around the country, online auctions are the ultimate in relaxed and straightforward sales. Within the auction time frame, which can extend to a few days or a few weeks, bids can be made at any point, no matter the time of day or night.
If you can connect to the internet, you can place a bid to buy and it does not matter whether you are in your pajamas or your best suit. You only have to compare this with hanging about in front of a county courthouse in the rain or standing uncomfortably in a packed auction room. In fact, you only have to consider the comfort, privacy, and security of bidding online at home to realise the true benefits.
The online auction provides a very valuable opportunity for investors, particularly those on the hunt for under-appreciated buildings and homes that have the potential to become second or third wages. It is the choice of the buyer whether they want to browse auction properties across the country or just in their local region. If they are interested in looking further afield, they can consider properties in far flung states, just as easily as ones in the neighborhood.
With the support of data rich platforms, buyers can browse and view many different properties. The best online real estate auction platforms enable users to peruse data relating to comparables, local amenities, and proximity to burgeoning regions. They offer prospective investors accurate and valuable data relating to the most appealing characteristics of any building.
There are some platforms which enable buyers to talk with sellers, but these are less common. If a property is available for an open house viewing, or even a live online viewing, the information will be posted on the website.
For instance, auction properties advertised on websites like RealtyTrac are matched with a predicted market price, comprehensive comparable deals, and a full history of any liens or loans which have been taken out against the building. It is also possible to use this platform to browse other buildings listed for sale in the chosen region and to search through properties being sold at foreclosure auctions.
It is important to discuss another important upside to online auctions - the excitement and rush that is felt when sales are made. As auctions come to a finish and the speed of bids increases, many buyers start to feel a huge sense of exhilaration and anticipation.
On the bid4homes.com platform, a real estate auction is actually extended if lots of bids are still being made at the finish. The extended sale will come to a close when five minutes have passed within any new bids being made.
The best online auction houses even make the easy management of settlement possible via the internet.
For those on the hunt for information relating to live home auctions, see the following article: Buying Foreclosures At Auction
There are numerous benefits to buying at online auctions, but one is a little more prominent than the rest. For a seller, the speed of online sales is a huge advantage. First, a preview of a home is posted online and this is immediately followed by the initial home auction bidding phase. The longest that these processes can last is around four weeks, so things happen fairly quickly. The age old mantra of 'Time equals money' certainly has a lot of weight when it comes to selling properties online.
On platforms like bid4homes.com, leading bids are legally binding and there are no contingencies.
Now, this is where things get even more useful. The online sale, unlike the live auction, carries only a very small fee for displaying and advertising the home. The seller is charged a commission fee only after the transaction has been finalized. In an era defined by a surplus of providers and a deficit of buyers, this is a very useful process for sellers. With online auctions, properties can be sold fast with minimal danger.
For a lot of sellers, there seem to be more buyers available online - it is certainly true that auctions can be attended and viewed by people all across the planet if conducted via the internet. For instance, bid4homes.com currently has more than 40,000 members from all over the world. With its affiliation with RealtyTrac, this gives bid4homes.com exposure to an estimated three million visitors.
If a building has been priced correctly, there will be many bids, with each climbing higher than the one before it. This is different to a traditional sale which sets out the highest price and then usually allows bidders to fall below it.
If the building is not sold, it tells the seller something important about its reserve price. It is up to them to adapt this reserve price and have another go at selling the property. They can list the building with an agent or they advertise it with a new auction house. In other words, it is possible to use an initial auction as a pricing 'test.'
Plus, there is another important downside to this test. If a seller owns lots of properties, they can put a select few up for auction and use them to test the efficiency and reliability of the service.
The supervisors at top quality auction houses are used to supporting sellers when it comes to offloading their properties. If the loftiest bid submitted is just outside the bounds of the reserve price, a skilled auctioneer will take the time to ask the seller if he wants to reconsider the legitimacy of the bid, particularly he knows that the seller wants to offload the property quickly. This kind of personal service is what many sellers are looking for.
The bottom line is that buyers and sellers must be aware of the fact that the auction house has no ownership over the building. It only creates a forum in which interested buyers and sellers can communicate effectively and successfully. It is the job of the auction house to help both buyers and sellers realize their objectives.
With ease of use, speed, and the awesome influence of the internet, it is no surprise to find that millions of people are now turning to online auctions to find the properties of their dreams.
The Bidwin.org platform offers a similar service and is based in Canada, with a head branch in Calgary.