Overview of Online Real Estate Auctions
Online real estate auctions serve as virtual marketplaces where prospective investors place competing bids on properties. The highest bidder secures the deal. A unique advantage of these platforms is their transparency; all bidders can track their competition in real-time. Moreover, they often require an upfront deposit, which ensures the sincerity of bidders and discourages non-serious participants.
Add Auction Start SearchHow Online Auctions Work
A key advantage of buying or selling at auction is speed, with the majority of the work undertaken prior to the auction commencing.
Home sellers are able to set a minimum selling price and accept or reject any offer during the auction campaign.
Auctions campaigns traditional last from 4-6 weeks giving the agent time to generate interest from multiple parties by advertising via various channels.
Furthermore, auctions encourage transparent competition to arrive at what is deemed as ‘current market value’ for a property.
Prior to auction day, prospective buyers will have the ability to view the property and if interested can choose to obtain a copy of the Contract of Sale, arrange a pest and building inspection report, and get their finances in order.
Prospective buyers are expected to understand when buying at auction they are purchasing a property ‘as-is, where-is’ unless otherwise stated.
Onsite, in-room and online auctions are traditionally “unconditional”, so when the hammer falls, the exchange of contracts has effectively occurred.
Winning buyers will have 3 days to pay the agreed percentage of the non-refundable earnest deposit to the assigned title company, up to 30 days to close escrow and pay an agreed upon non-refundable buyers premium fee top the auction company at the close of escrow.
The buyers premium fee is not part of the winning bid purchase price.
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