Online Real Estate Auctions: The Benefits are Quite TransparentFebruary 23rd, 2011 by PA - Bloger
Online real estate auctions are offering both buyers and sellers a highly attractive option. Not only are outcry auctions bringing in scores of bidders and buyers, but now online auctions are casting a nationwide net for anyone interested regardless of geographical location. For those new to the idea, buying a property via the Internet may seem a bit risky. Much to the contrary – online real estate auctions provide tremendous transparency where buyers can obtain all necessary information and then some. According to the LFC Group of Companies,”… online auctions feature an unprecedented level of transparency, allowing all interested buyers to view and download due diligence materials from anywhere with an Internet connection.“ Bidders are also given full insight into the competition. As XWAuctions states, “There is more transparency in the whole auction process because every potential buyer knows what other buyers are willing to pay for the same property.”
Convenience is an obvious benefit of online real estate auctions. Prospective buyers can search through numerous properties nationwide from the comfort of their own computer. “Properties in highly distressed markets are ideal for online auctions,” says Jesse Loomis, Vice President of Business Development at Bid4Assets. “An online auction brings information and bidding to a worldwide pool of buyers that cannot be easily reached through a traditional real estate agent.”
For sellers auctioning real estate, choosing the online method furnishes them with a far-reaching buyer base as well as maximum exposure. Online auctions have a “’call to action’ element,” Loomis says. “Properties in a local MLS system may sit for months before any offers are made, but a two week online auction can generate an offer on any property. Absolute auctions are even more effective, as they guarantee a property will sell in a short timeframe at the highest price the market will bear. This can work well for homes, land, multi-family, and commercial property.” Expediency is another perk with online auctions, where the use of electronic documents can help speed up the buying process and cut down on unnecessary paperwork.
Realtors and real estate brokers are also realizing the advantages of online auctions. XWAuctions says the online sales process is “an additional tool for selling real estate. Realtors would benefit from faster turnover of properties, faster receipt of commissions and it generates additional premium revenue streams in terms of listing fees and a buyer’s premium that they can charge. They are also able to attract more buyers, sellers, and agents to their business by leveraging auctions as a tool to gain competitive advantage.”
Through online real estate auctions, it seems that all parties have the chance to profit – buyers, sellers, and real estate professionals can all cash in on this lucrative option. This technological asset to the real estate industry is just one more facet of what makes today’s market chock-full of burgeoning opportunity.
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