How Online Auction Platforms Can Help Prevent Fall Throughs

The frustration of a property sale falling through after accepting an offer is an all-too-common nightmare for estate agents and sellers alike. According to one property survey, more than 35% of traditional real estate transactions failed to be completed for one reason or another in 2023 alone.

This risk is ever present, simply because there are so many issues that can cause the fall-through of a property sale in the traditional housing market. It can happen if the buyer changes their mind after suffering buyer’s remorse or an adverse survey, the buyer finds something else, the buyer fails to raise finance for the purchase. There can also be issues with property chains breaking down, with these reasons being additional risks for any sale reliant on the sale of another property.

So, what can estate agents do to tackle this challenge? Do they have ways to steer clear of these risks? Absolutely! By utilising an online property auction platform, estate agents can sidestep this issue - offering clarity, peace of mind, and a seamless route to a secure sale.

Greater Control with Auction House Software

An online auction platform empowers the estate agent with enhanced control over the selling process. Buyers are required to register and authenticate themselves before placing bids and, upon a successful bid, they must promptly pay a buyer fee, reservation fee or amount of money towards the purchase price. These strict protocols vet bidders as qualified and motivated from the outset, practically eliminating the risk of one or more parties backing out at the last second. This process not only speeds up the transaction but also ensures security, as buyers are financially committed.

Communication & Reassurance

By design, online property auctions spark competitive bidding among an array of motivated buyers who have been pre-vetted. Widespread marketing efforts ensure maximum visibility to prospective bidders who have cash in hand and incentive to compete for winning the property.

This dynamic creates a fair, transparent competition where the final sale price is driven up organically through bidding - rather than being potentially undercut by one-off offers in private sales. Sellers can feel confident they're achieving maximum value.

Security & Buyer Commitment

The winning bidder who meets the seller's reserve price must immediately pay either a non-refundable "reservation" fee to secure exclusive rights to exchange and complete the purchase or a buyer fee and an amount towards the purchase price as part of an online exchange. This monetary commitment, often transacted through the auction software itself, legally binds and financially commits the buyer to transact - preventing those frustrating fall-throughs that plague traditional home sales.

Efficiency of Auction House Software

From start to finish, the entire online auction process is sped up compared to private treaty sales. After initial contact, properties are typically sold in just 6-8 weeks on average. This timeframe is truly remarkable, being almost 100% faster than traditional home sales. The swift sale cycle avoids any delays, ensuring all parties can swiftly reach a satisfying conclusion!

Simply put, it’s time to say goodbye to uncertainty with Bamboo Auctions. Join our online auction platform today and experience a streamlined process that locks in commitment, reduces risks, and virtually eliminates fall-throughs. Get in touch today!