- June 26, 2023
- Reading time about 5 minutes
Real Estate Auctions are no longer meant for selling off only distressed properties. The traditional way of home selling & buying method has always been the same over the years. However, with the evolution of technology, the modern method of auction i.e. online auction is making auctions more accessible to a broader range of buyers while delivering a reassuring level of certainty for the seller.
In this blog, we will learn everything about online auctions and how top real estate companies like BidHom are transforming the way people buy and sell properties through reliable Real Estate IDX Listing platforms.
Tremendous Increase in Online Auction Platforms
Today, the real estate market has changed tremendously as more and more type of property is sold through online auctions. Renowned auction companies like Concierge Auctions have been recently ranked as one of the country’s fastest-growing firms. With a proven track record of closing more than $790 million in luxury properties since 2008, their typical sale ranges from $2.5 to $30 million.
Distressed sales have been decreasing with a record of only 8% of single-family sales in June 2015 as per the research by RealtyTrac’s June and Mid-Year 2015 U.S. Home Sales Report. The same has been recorded to be 19% in 2014 and 45.9% in February 2011. What does this reduction in distressed assets mean?
Even when the number of distressed homes sold continues to reduce, the number of properties sold is going up, says Executive Vice President of Auction.com. He also added that they sold around 50,000 properties last year and are on track to sell more than 60,000 in the current year.
Talking about another firm, Genesis Auctions which has merged with industry stalwart Hudson and Marshall, the founder and CEO of former, Trixy Weiss says that- “Hudson & Marshall doesn’t see the reduction in distressed inventory in a negative way. It’s a good opportunity for auction as a disposition method to expand its definition and scope and integrate more fully into the traditional real estate space”.
As we can witness increases in many new innovative auction platforms for brokers and agents, they are connecting the dots between auction and traditional sales seamlessly. Though the number of foreclosures sales reduces, auction companies are not sitting idly rather they are increasingly making use of technology and innovations to gain a higher share of the overall real estate market and replace traditional transactional models. To meet the evolving changes in the real estate marketplace, firms are embracing the opportunity to thrive with the right technologies.
Why You Must Choose Online Auctions?
One of the main reasons why we are witnessing a tremendous rise in auction platforms is because the auction model is uniquely suited to the increasing consumer desire for faster, easier, and more digital real estate transactions. Rather than going for traditional closing processes which take months to finalize, the online auction method offers a higher degree of certainty and convenience for both homebuyers and sellers.
The main advantage of using the real estate auction process is time certainty with the guarantee of getting properties sold. Research says the most uncomfortable period for a home seller is to think about whether someone is going to make an offer on their property or not. This problem is solved in online auctions as everything takes place on a particular day and is set up in advance. Also, the reserve price ensures that sellers get the price they want.
When we talk about potential homebuyers, the most stressful time is after they make an offer. In the case of a traditional sale, the interested buyers would make a bid and wait for decisions without any visibility into the amount of other bids, or what it would take to win the property. However, this is not the case with auctions as everything is transparent on who is bidding and how you can make the final offer to win the property.
The research by the National Association of Realtors Profile of Home Buyers and Sellers in 2015 found that 50% of homebuyers used a mobile or tablet web/app during their home search process. This means online auction firms are in a good position as they can engage both sellers and buyers in one space. Auction.com even came out with their iPad native app last year with more than 100,000 downloads, accounting for tens of millions of dollars in sold properties.
In the year 2014, Google Capital made a $50 million investment in Auction.com, giving full support to the company with money and expertise to open the doors of mobile expansion.
Our generation of today wants everything online. The same goes for the homebuyers and sellers. They are now ready to choose the ease and efficiency of online transactions rather than working with agents and closing documents with endless meetings. They want to get everything done in front of their desktops, laptops sitting in pajamas. This is where the real opportunity for online auction companies opens up in the market, in many ways.
Undoubtedly, we can see that auction firms are making the best use of technologies and smart innovations in their real estate auction platforms to change the face of property auctions for the better. Auctions are made more and more accessible to buyers as well as help sellers achieve higher prices.
If you are planning to build a real estate online auction platform, BidHom is the right choice for your business needs. As a trusted Free Real Estate Auction Software that holds a track record of helping clients sell thousands of properties every year, BidHom can get you a custom-made property auction website with IDX listing, transaction platform, and more. Get in touch with our experts to launch a free real estate auction website today.