Making the Auction Room Digital – What You Need To Know About Online Property Auctions

Recent restrictions meant we had to stay home and could not host open homes or auctions. To be able to continue to help people buy and sell properties, the real estate industry had to embrace digital alternatives, and online auctions were one of these.

  • 27 August, 2021
  • COASTAL, COMMERCIAL, LAND/SECTIONS, RURAL/LIFESTYLE, RESIDENTIAL
  • Online Auctions, Auctions

Online property auctions have been with us since before COVID-19 was known around the world. But it has since become a newfound necessity for this method of sale, which allows home buyers to receive a new level of convenience and ease when bidding for their dream property.

Auctions have been very popular in the market in recent times and having the option of an online auction means sellers and buyers do not need to miss out when circumstances change.

With COVID alert level changes, this may mean in-person auctions cannot take place. If an auction is postponed or delayed, it could mean sellers have to wait several weeks before the chance to have an in-person auction.

 

How do virtual auctions work?

Online property auctions work in much the same way as in-person auctions, except you can be wherever you want via the internet.

This gives you the comfort of being able to bid from your own home or anywhere you have access to a mobile device.

As the seller, you get the ability to watch a live stream of the auction which allows you to follow the bidding in real-time. Every step of the way you will know exactly what is happening.

 

Registering to take part in an online auction

The process to register for an online auction can vary depending on the auctioneer and the platform their organisation uses. No matter the situation, if you want to try and buy a property through an online auction you need to register ahead of time.

A potential buyer should make contact with the listing agent, who will take them through the registration process. The real estate agent should encourage buyers to register early so they can become familiar with the paperwork and the process required.

During Level 3 and 4 COVID-19 restrictions, potential buyers have to register via the Telephone Bidding authority, and during this process they will have to provide:

 

  • Full legal name
  • Phone number
  • Copy of photo ID
  • Solicitor details
  • And any variation to auction terms as agreed to by the sellers.
  • Once you are a registered bidder you will have a dedicated salesperson you will be talking to. That salesperson will communicate with the auctioneer and place your bids on your behalf.

 

Advantages of virtual property auctions

Online auctions offer great benefits that will guarantee a quality bidding audience.

Because buyers are bidding from the comfort of their own lounge room, the pressure is usually reduced. It becomes easier for them to stay level-headed and make better decisions. At the same time, they can also consult with advisers who might not have been able to attend the on-site auction. This will help attract serious, quality buyers.

In some cases, virtual auctions can also encourage more activity due to a fear of missing out. As bidders cannot see and gauge the other buyers, they might be tempted to bid more to try and get ahead of the competition. This may help achieve a higher sale price for your property.

LJ Hooker NZ

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