When it comes to online real estate auctions, I'm finding there are still a lot of real estate agents who don't understand them.
Here are some of the most common misconceptions...
1) The seller must accept the highest bid - Not true. The only time that is true is when an auction is done absolute. Almost all online auctions are done with a reserve price or "subject to seller confirmation"
2) Auctions are only for distressed properties - Not true. Luxury homes and brand new homes are regularly being sold through online auctions.
3) People will Bid without visiting the property - Not realistic. Yes, in certain situations when you are auctioning land or something for pennies on the dollar, you could receive bids from someone who hasn't physically viewed the property. Realistically you need to have scheduled open house previews for potential buyers to visit.
4) No way to validate bidders - Not true. Many auction systems have credit card validation processes as well as full "bidder pre-approval" processes. As a listing agent you can require the same requirements you do for presenting a written offer.
Want to learn more? Join our next webinar - Click Here to Register