“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 (auction.com) has added "online only" auctions in addition to their ballroom-style auctions. In fact, REDC's "online only" auctions are regularly bringing in higher sales numbers than their ballroom-style events. A recent press reported that for the first weekend in December, REDC's online sales were $37.8 million and their sales at their ballroom-style events were $31 million.
The Internet has made the auction process available to real estate agents and is changing the real estate auction industry. The success is still related to how well it is advertised and whether the pricing is right, but an online auction is an easier alternative than it use to be.
Another reason that online real estate auctions are becoming popular is because buyers are more comfortable bidding online. It's easier to bid online than to write up a sales contract, and negotiation between multiple buyers is all automated.
If you aren't familiar with online real estate auctions, it's a great time to do some research and find out more.
We'll also share what we've learned on on next webinar - Real Estate Online Auctions
Wednesday, February 17, 2010
Friday, February 12, 2010
Creating urgency & buyer demand
One of the things missing in today's market is a sense of urgency for buyers to act. Sure the government tax incentive is helping a little and I'm sure we'll see things pick up a little more before we reach that deadline, but then what?
Remember the days of multiple offers and offers that went above listing price? That sure was a lot more fun.
In talking with a RE/MAX broker this week, he shared with me an interesting observation... Whenever one of his short-sale listings goes under contract, or if he temporarily takes a listing off the market, then he gets several calls from other agents who want to know what happen or who have a buyer who wants to write a contract on a short-sale. These status changes are creating a sense of urgency for buyers.
So, is there a better way to create a sense of urgency and demand for a listing?
Yes, there definitely is and I've seen it work many times. It's online bidding and it involves taking a listing and marketing it in a non-traditional way. Marketing it in a way that sets scheduled open house previews with no other access (gets all the buyers in at the same time), setting a limited time for buyers to make an offer (usually 2 weeks or less), open competitive bidding so all buyers know the highest offer at all times and providing an interactive engaging online bidding experience.
If this concept is new to you, it's a lot easier than you would expect and think of the control it gives you and the seller. You now have a solution for someone who needs to sell quickly.
If you're interested in learning how you can use this strategy in your market, RSVP for our next webinar.
It will open your eyes to a whole new world of possibilities!
Thursday, February 4, 2010
Another Online Real Estate Auction Myth
I want to clarify another common myth or misunderstanding about selling real estate through an online auction.
Myth: If I use an online auction, I MUST sell to the highest bidder.
Truth: Most online and even "live" auctions are done using a hidden reserve or “Subject To Confirmation”. In either case, the seller is protected and not forced to sell if the bidding doesn’t get high enough. An "absolute" auction is the only auction type that requires the seller to sell at the high bid.
When an auction is marketed correctly, the process brings true market value for a property. Even in the case where that price isn't as high as the seller had hoped, you can use the online bidding process to help bring the seller to reality on what the market will pay.
Right now, I'm seeing more and more online auctions used for short-sale situations because it's a quick way to get the highest and best offer to present to the lender. The competitive bidding also presents a good case that the highest bid is "true market value".
If you're interested in learning more about online real estate auctions - Join our next Webinar
Myth: If I use an online auction, I MUST sell to the highest bidder.
Truth: Most online and even "live" auctions are done using a hidden reserve or “Subject To Confirmation”. In either case, the seller is protected and not forced to sell if the bidding doesn’t get high enough. An "absolute" auction is the only auction type that requires the seller to sell at the high bid.
When an auction is marketed correctly, the process brings true market value for a property. Even in the case where that price isn't as high as the seller had hoped, you can use the online bidding process to help bring the seller to reality on what the market will pay.
Right now, I'm seeing more and more online auctions used for short-sale situations because it's a quick way to get the highest and best offer to present to the lender. The competitive bidding also presents a good case that the highest bid is "true market value".
If you're interested in learning more about online real estate auctions - Join our next Webinar
Wednesday, January 27, 2010
A Common Real Estate Online Auction Myth
I want to clarify another common myth or misunderstanding about selling real estate through an online auction.
Truth: This is extremely unlikely. The success of an online auction depends on buyers having access to inspect the property before placing their bid online. Access is usually given through scheduled open house “previews”, but can also be done by appointment.
Although it does happen, it's unrealistic for you or your seller to expect that if you use an online auction, someone from another state or country is going to start bidding without ever visiting the property.
An online real estate auction will be successful, when you understand that the online bidding automates negotiation with the local buyers you've attracted through your marketing (MLS, open houses, yard signs, etc.).
And, yes, it does happen that non-local buyers sometimes get involved, but they either have someone locally they are working with or have another means to perform due diligence.
Truth: This is extremely unlikely. The success of an online auction depends on buyers having access to inspect the property before placing their bid online. Access is usually given through scheduled open house “previews”, but can also be done by appointment.
Although it does happen, it's unrealistic for you or your seller to expect that if you use an online auction, someone from another state or country is going to start bidding without ever visiting the property.
An online real estate auction will be successful, when you understand that the online bidding automates negotiation with the local buyers you've attracted through your marketing (MLS, open houses, yard signs, etc.).
And, yes, it does happen that non-local buyers sometimes get involved, but they either have someone locally they are working with or have another means to perform due diligence.
Wednesday, January 20, 2010
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 sorting out which one is best for your client. That's why I love the real estate online auction model for selling. 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 a more proactive way to market and sell real estate. It attracts more buyers and accelerates the sale of a property.
It's fun to see real estate agents embrace and apply this new approach to selling. There are some very creative strategies being used which we will be sharing at our next webinar.
You're welcome to join us!
Wednesday, January 13, 2010
Why Real Estate Online Auctions?
Here are the reasons why online real estate auctions are going to be a major part of selling real estate in the coming years.
- The use of the Internet is only going to continue to grow. Most buyers already search for homes online, placing a bid is the next logical step.
- If you have kids, aren't they more technically savvy than you were at their age? The Internet is already a large part of their lives.
- Ebay has helped many Internet users become comfortable using online auctions to buy and sell items.
- The traditional "list & wait" option for selling real estate is outdated. A more proactive approach is needed.
- Some large auction companies are starting to see more sales from online events than from their live events. Why would they continue to bother with the cost and coordination of a live event?
- Too much inventory on the market. The online auction provides a more efficient way to accelerate the sale of real estate.
- An online auction is exciting for both buyers and sellers to be involved in. When done right, they are the best way to achieve "true market value" for a property.
Friday, January 8, 2010
2010: The Year of the Online Real Estate Auction
This is the year we will see exponential growth in the use of online auctions to sell real estate. The technology and user experience is getting better all the time and it's easier than ever for real estate agents to use them.
On Thanksgiving weekend, REDC (Real Estate Disposition Corporation) sold $33.6 million of real estate through online auctions on it's website (www.auction.com) and the following weekend sold $37.8 million. REDC is one of the largest companies using online auctions, but there are many others.
One misconception is that people will bid on real estate without seeing it in person. This is NOT how it usually works. Real Estate that is sold via online bidding usually has "Preview" times when the house it open for interested buyers. The Internet just provides the technology to automating the bidding process.
With the huge amount of real estate inventory, the continual growth of the Internet, and the need to accelerate the sale of real estate, it only makes sense that in 2010, we'll see an explosive growth of online real estate auctions.
Are you ready?
On Thanksgiving weekend, REDC (Real Estate Disposition Corporation) sold $33.6 million of real estate through online auctions on it's website (www.auction.com) and the following weekend sold $37.8 million. REDC is one of the largest companies using online auctions, but there are many others.
One misconception is that people will bid on real estate without seeing it in person. This is NOT how it usually works. Real Estate that is sold via online bidding usually has "Preview" times when the house it open for interested buyers. The Internet just provides the technology to automating the bidding process.
With the huge amount of real estate inventory, the continual growth of the Internet, and the need to accelerate the sale of real estate, it only makes sense that in 2010, we'll see an explosive growth of online real estate auctions.
Are you ready?
Subscribe to:
Posts (Atom)
