Online auctions have been growing in popularity over the last few years among both buyers and sellers, and they are becoming an increasingly popular method of sale for estate agents across the country to add to their service offerings. Online auctions for properties are a quick and efficient way to find buyers and secure sales. However, the way in which suppliers enable estate agents to offer and deliver online agents can vary, so it is important to understand the differences when looking at providers.

With a global audience of buyers ready to bid, and relatively low cost to offer and implement, offering a live property auction online as an estate agent is a thoroughly modern method of selling property. Sale prices can be maximised via live competitive bidding, property exchanges are immediate and straightforward, and the accelerated transaction time frame suits everybody involved.

Here we look at what you need to do as an estate agent to offer online property auctions effectively as an option for your buyers and sellers.

Choosing Your Preferred Online Platform

The initial decision that needs to be made is the online technology that you will be using to host your auctions. There are quite a few online auction platforms around these days, so look for online auction specialists who have built their platform from the ground up to be particularly secure and efficient. Following that you’ll need to decide whether to outsource your online property auctions entirely or bring all or part of the transaction process in-house.

There are pros and cons to each route to consider. No matter which direction you choose, having a strong online auction presence allows you to exponentially expand your market reach beyond just local buyers. With proper execution, you can consistently generate more bidder competition to maximise sales prices.

Identifying The Right Properties For Auction

Various factors can determine which properties are ideal for online auctions. For example, in standard property transactions, properties often get tied up in long chains where one sale is contingent upon another buyer's sale completing first. Online property auctions eliminate this logistical headache since they are uniquely designed for straightforward, chain-free deals.

Sometimes the very qualities that make a property special also make it trickier to sell through conventional means. Unique properties that are hard to value - whether architectural charmers, properties in need of major renovations, or those with uncommon features - can benefit from online auction exposure. Listing details, images, and video allow these distinct selling points to be showcased front and centre to the right motivated buyers, to allow the right market price to be achieved.

Some sellers have a heightened motivation or pressing timeline for selling quickly. This could be due to relocation, financial circumstances, inherited properties, or any number of personal factors. The efficiency of an online auction represents the best-selling solution for these time sensitive situations.

Once you have identified the right property with the right vendor circumstances for auction, you’ll need to price it properly. Remember that with auctions, we are looking for multiple bidders to bid, rather than one person to offer on a property. Pricing is critical to the success of your online auction and you should ensure that your online auction supplier can advise you on how best to approach this if you need that extra support.

Preparation Of A Legal Pack

A legal pack is a crucial part of the auction process and while it should be extensive, it must also be clear and easy to understand. This suite of digital documents provides bidders with full visibility into all details and disclosures about the property before the auction even begins. Not only does this create trust in the process, but it helps qualify bidders as informed and ready to follow through on their commitment.

With a well prepared legal pack, bidders have all the insights they need to participate confidently. This ensures a competitive, trusted and transparent environment for buyers to participate in the auction.

Marketing Your Property and Managing Enquiries

After all the above is complete, you are ready to go live. There are going to be a lot of enquiries so you will need to be ready to respond quickly to maintain the interest of all potential buyers. Advertising the property as being up for auction is imperative, so we strongly advise publishing the property on all the major portals and marketing to your own database. Push your properties on social media and any other platform to gain attention too.

Sale Completions

The highest bidder when the timer runs out will win the property, assuming that the reserve price has been met or exceeded. Depending on the online auction provider you choose, you may have payment handling and ID checks included and contracts may be automatically generated and signed online.

Support That Drives Success

The most effective technology platforms are the ones that put people at its core. For that reason, it’s essential that you are well supported by your supplier, not just at the point of sale and integration, but throughout the journey of a transaction and the duration of your relationship. Beyond all the features, and tech benefits, it is critical that you trust your supplier to provide you with reliable value add; to help you win more instructions and sell more properties.

Are you an estate agent ready to revolutionise your property sales? Discover the power of online auctions with Bamboo Auctions and get in touch with one of our expert team today!