- September 15, 2023
- Reading time about 5 minutes
When we talk about real estate auctions, proxy bidding is one of the most trending topics that has had a huge impact on real estate auctions. Living in the fast-paced era of real estate auctions, buyers and sellers seek efficiency and convenience to secure their dream properties without struggling with the auction process.
With the evolution of proxy bidding, a game-changing approach that enables individuals to take part in property auctions remotely from anywhere, even when they cannot attend in person. In this blog, we will learn about the significance of proxy bidding in real estate auctions and how we can build a Top Real Estate IDX MLS Website to transform the auctions.
What is Proxy Bidding & How Does It Work?
As we know Proxy Bidding allow participants to take part in the bid without the need for constant monitoring, it is also known as absentee or automatic bidding. Known as a helpful approach for both in-person and online auctions, this bidding type enables participants to set a maximum bid amount in advance where the auction holder/platform can increase their bid until the maximum amount is met.
The best thing about Proxy Bidding is that it allows bidders to keep focus on multiple auctions at the same time, which removes the need to constantly monitor every auction. If you are wondering how proxy bidding works, you have come to the right place.
Proxy bidding can be easily deployed in multiple auction settings such as physical auctions and online platforms. In the case of physical auctions, the bidders will communicate their maximum bid to the auction house with the help of phone or email before the event starts.
When we talk about online auctions that are hosted by the top Real Estate Auction Platform, it enables bidders to submit their maximum bid directly on the platform. All the participants can place their bids and the auction platform will automatically increase the proxy bidder’s bid until their maximum amount is reached.
Pros and Cons of Using Proxy Bidding
Proxy bidding can offer huge benefits in real estate auctions, making it a great approach for both buyers and sellers. Let’s check out some of the main advantages and weaknesses associated with proxy bidding strategy.
Benefits of Using Proxy Bidding
Using Proxy bidding helps individuals to take part in auctions from anywhere in the world without the need for physical presence.
Bidders can focus on other priority tasks as the auction platform automatically increases their bid.
Proxy bidding helps individuals to bid on multiple auctions simultaneously without the need for constant monitoring.
Setting a maximum bid enables bidders to avoid getting carried away with the auction excitement and ensures they stay within their budget.
Weaknesses of Using Proxy Bidding
Bidders who set lower maximum bids to win multiple auctions may face low competition, leading to missed opportunities.
Another thing about Proxy bidding is that bidders may not have enough time to raise their bids if their maximum amount is reached before the auction ends.
Proxy Bidding in Real Estate Auctions
Proxy bidding has had a significant impact on the real estate auction industry, allowing buyers and sellers to navigate the market more efficiently. Additionally, the emergence of real estate IDX MLS websites has further enhanced the proxy bidding process, providing a seamless and comprehensive platform for all the participants involved in the bidding process.
Using real estate platform help streamline the proxy bidding experience with features such as intuitive interfaces, robust search capabilities, and comprehensive property listings, helping users to make informed decisions. If you plan to take your real estate business to new heights of success, make use of a real estate website with a proxy bidding experience.
This provides a user-friendly dashboard where participants can enter their maximum bids, monitor auction progress, and receive notifications when their bid is exceeded. These real estate platforms also offer real-time bidding updates, ensuring transparency and promoting a competitive environment.
Here are some of the tips that can be considered to make your real estate auction a grand success-
Analyse Market Value
Before taking part in a proxy bid, ensure that you conduct thorough research on the property up for auction to understand its market value and set a realistic maximum bid.
Set a True Maximum Amount
Before setting your maximum bid, you must be honest with yourself about the highest amount you can pay for the property. Avoid initial low maximum bids with the motive of raising them later, as time constraints may prevent you from adjusting your bid.
Focus on Minimum Bids and Fees
Consider minimum bid requirements & additional fees associated with the auction as they may impact your bidding strategy and final cost.
Use Bid Sniping
Bid sniping helps in placing bids only at the last moment to prevent other bidders from “fishing” to determine your maximum bid & potentially drive up the price.
After going through the blog, we can figure out that proxy bidding offers a great opportunity for all the individuals who participate in real estate auctions. From providing ease and convenience to efficiency and flexibility, Proxy Bidding has brought immense benefits for both buyers and sellers.
The proxy bidding for real estate auctions has been further enhanced with the integration of the advanced Real Estate Software Solution enabling participants to navigate through the property market with ease. If you are planning to redefine the auction landscape and unlock new opportunities for buyers and sellers, BidHom can help you build a dedicated real estate solution to embrace the power of proxy bidding to a huge extent. Connect with our experts and take a demo today!