subject: An Introduction To Real Estate Auctions Online [print this page] The popularity of real estate auctions online continues to increase as buyers and owners become more aware of the benefits that are offered by this way of conducting business. The best auction websites are those that create opportunities for brokers and owners to market their properties successfully in a way that drives qualified buyers to them. Participating in real estate auctions online is convenient, fair and beneficial for property buyers.
If you as a broker are unfamiliar with this manner of marketing and conducting property sales, you may have some questions. One of the most common questions about these types of auctions is how to introduce property owners to the idea. Many people are only familiar (and comfortable) with traditional means of selling real estate. For those owners to become interested enough to hear all of the details, methods and benefits, he or she needs to know that selling property by real estate auctions online results in faster sales cycles and deals that close at the highest possible prices for sellers.
Anyone who has assets on the market today would be well suited to participate in real estate auctions online, especially motivated sellers who need to be certain that closing will happen within a short, specific time frame. An example of this would be anyone facing loan maturity or those who need to convert a property into cash quickly. In order for a successful marketing campaign to be carried out, there are some steps that need to be followed to make sure that the owner or seller of a property will be convinced to conduct a real estate auction online.
To begin, the owner/seller needs to realize that the market can be rather stagnant, but an auction gets the buyers directly involved in the selling process. By nature auctions create deadlines, and qualified buyers bid up to a specific high price. It is recommended that the minimum bid be set fairly low for a few reasons. Trends have shown that auctions are most successful and profitable for the seller when a large number of people are involved in the bidding process. Usually it is recommended that the minimum bid be set to at least one half of the sellers original asking price.
Although there are still many property owners who think they might prefer to sell using traditional, non auction methods, it is important that they understand the benefits of real estate auctions online. If the seller is truly motivated, this interactive format is the best option. Usually with the best real estate auction websites, buyers will be required to submit a winners deposit, which is non refundable to discourage casual bidding.
