subject: How Do Online Real Estate Auctions Work? [print this page] There are many ways that property owners benefit from using real estate auctions to sell their properties, especially commercial properties. They enjoy benefits over conventional means of selling such as lower overall costs, a faster sales cycle and the ability to obtain fair market value. If you have heard about these auctions but are not sure how they work, you can find a breakdown of what a typical transaction entails here. Keep in mind that every company differs somewhat in its methods, procedures and protocol, but in general you can expect real estate auctions to operate in similar fashions.
The beneficial process begins with a broker, who collects details and information about the property that is for sale such as photos and other due diligence materials. An aggressive minimum bid should be set to attract a large pool of potential buyers. It is often recommended that the minimum bid be set at least at half of the propertys value. The broker has the means and methods necessary to find qualified, serious and interested buyers. Often with conventional means of selling a property, an owner finds that it might be difficult to motivate potential buyers to act. However, by nature auctions encourage buyers to be active to make a move before a deadline, which is when the auction time runs out. When potential buyers know that there is a definitive time limit, they are more apt to act with their bidding so as not to miss out on the property they are interested in.
Holding a real estate auction online is very cost effective. A good company to serve as a platform for these auctions is one that is able to create a custom property website online for buyers to research. Having each property have its own website is extremely beneficial because the owner does not have to compete for a potential buyers attention by being one of many listings in a traditional real estate guide. The single property has its very own unique Web address.
The next step is to market the property for sale using that unique Web address. It is during this time that a large pool of potential buyers is created and interest in the property peaks. Buyers are motivated to act on the property because by nature, auctions impose deadlines and time limits. As bidders compete for the property, the highest possible price for the owner is attained. A purchase agreement is then signed between the acting parties. Successful real estate auction websites serve as an excellent means for buyers to purchase property easily and quickly and for owners to enjoy selling at the highest price.
