Wednesday, September 23, 2009

Do online real estate auctions work?

“Do online real estate auctions really work?” is a common question from anyone new to using online auctions to sell real estate.

The answer: Yes, absolutely they work! That's why were seeing a huge shift of auctioneers and real estate agents to adjust their selling strategies and start using them. That's why REDC ( & $5+ billion in sales last year) now has "online only" auctions in addition to their ballroom-style auctions.

Prior to the popularity of the Internet, only live auctions were available. A live auction is successful in drawing attention, but there is substantial marketing cost and coordination involved.

Today, however, the Internet has made the auction process available to more people and is changing the real estate auction industry. An online auction can be just as successful in drawing attention and can cost much less. The success will still be related to how well it is advertised and whether it’s a good deal, but an online auction is an easier alternative than it use to be. Sellers are looking for more options, an online auction provides one.

Another reason that online real estate auctions are becoming popular is because buyers are more comfortable bidding online. No longer are online auctions just for “as-is”, sight unseen properties. The best success comes by opening the property for previews and allowing inspection periods and/or providing inspection reports. Another reason for their popularity is that it’s easier to bid than to write up a sales contract. All negotiation is automated and done on line.

An auction is one of the best ways to market or find a deal on a property. As buyer confidence grows and the online Real Estate Auction successes continue, more sellers will move to online auctions, changing the way real estate is bought and sold for everyone.

Wednesday, September 16, 2009

Multiple Offers: A good thing?

Getting multiple offers on a property is a good thing, right? 2 offers is usually not a problem, but what about 3, 4, 5, 6 or more?

On one level it's a good problem to have, but it sure can be a lot of work. That's why I love the online auction model for real estate. You can get all interested buyers competing online in an open format and all the negotiation happens automatically.

It's much easier, exciting to watch and you end up with the highest price for your seller.

To me, it just makes sense. The process is more effective than the "list & wait" model and our market needs something that will attract more buyers and accelerating the sale of properties.

What I don't understand is why I'm finding only few real estate agents open to the concept of using online auctions?

Is it too new? Does an "auction" have a bad connotation? Do agents not understand the process? Maybe all of the above?

Why the resistance and hesitation?

I'd love your feedback.