Online Property Auctions: How Do They Actually Work?

If you are wondering how an online property auction works and if it could be of benefit to you, then rest assured that it is actually a fairly simple process for buyers, sellers and estate agents.

There are multiple benefits to both buying and selling property via an online auction, but here we will mostly focus on the process itself and how online auctions work. Let’s dive into the subject of what an online property auction is, and the necessary steps involved for buyers and sellers.

What Is an Online Property Auction?

An online auction is a digital version of a traditional property auction.

Sellers, acting through their estate agents, can list their properties for sale by auction, with the entire transaction occurring online. This means they have the flexibility to transact on a specified date with a set period of time for marketing.

Properties are usually offered to buyers at an auction guide price (usually with a confidential reserve price attached, which cannot be more than 10% above the advertised guide price). After going through a verification process, buyers place their bids online. If a buyer is outbid, they get an opportunity to bid again. Bidding occurs until the timer reaches zero. With Bamboo Auctions, if a bid is placed in the final 5 minutes, the timer resets to 5 minutes to go. This will continue until there are no bids in the final 5 minutes.

If the reserve price is met or exceeded when the timer reaches zero, a legally binding sale occurs, either with the winning bidder entering an exclusive reservation period to complete the exchange or with the winning bidder legally exchanging on the property online.

How Online Auctions Work For Sellers

Buyers must pre-register and authenticate themselves prior to bidding on any auction to ensure they are locked into the purchase should they secure a winning bid. Once a buyer has successfully bid for a property, they are usually required to pay a buyer fee or a reservation fee. With Bamboo, this fee is set and specified by the estate agent and is made clear against each property listing and also in the bidding section of the online auction.

How Online Property Auctions Work For Buyers

Buyers must pre-register and authenticate themselves prior to bidding on any auction to ensure they are locked into the purchase should they secure a winning bid. Once a buyer has successfully bid for a property, they are usually required to pay a buyer fee or a reservation fee. With Bamboo, this fee is set and specified by the estate agent and is made clear against each property listing and also in the bidding section of the online auction.

What Are The Benefits Of An Online Property Auction?

The most obvious benefit is that buyers and sellers can take part in auctions from the comfort of their own homes, or wherever they have an internet connection. It is quick and convenient thanks to bidders being pre-registered, with legal documents downloadable in advance and at any time during the auction process.

Step into the future of property sales with Bamboo Auctions. Get in touch with our team today!