As an investment consultant, I like to keep on top of what's hot in real estate. More and more my clients are asking me about buying real estate online through auction websites.
“Is this a smart way to invest?” “Are online auctions safe?”
Most of the online auction providers offer the same basic product real estate, but they vary greatly in their services, fees and inventory. The type of investor and the volume of the transactions determine its success. I will discuss these topics in-depth in future blog posts.
Today I read an article on Realtor.org that was said to list the pluses and minuses of using online auctions to sell real estate. The list consisted of three downsides to selling with online auctions. This got me thinking. Here are three ways online auctions can benefit Realtors®.
1. Auctions Give Realtors® An Alternative Service to Offer Buyers and Sellers
You list properties on the MLS, your company’s website and maybe you use Postlets to send listings to Craigslist. You create your own virtual tours and participate in a handful of social networking websites to get new business. You are an online expert. Looking into the use of online auctions is the logical next step.
"Auctions give practitioners an edge over competitors and puts an alternative sales technique on the table for [his or] her sellers," says T. Clay in an interview with Haley Hwang of Realtor® Magazine Online. It is one more thing that your competition might be doing.
2. Shorten Transaction Length – Buy, Sell, Get Paid Faster
In an article written by Sara Weiss for Realtor.org, Lynn Gardner stated, “There are many benefits to home auctions – an auction creates urgency, which helps draw attention to the property, market value is determined quickly, homes typically sell faster and close within 30 days …” Ms. Gardner served as the 2008 chair of the NAR Auction Forum. So if you need to sell a property quickly or have investors that need to reinvest profits by the end of the year, an online auction might be for you.
3. Increase Your Capacity
By shortening transaction time you will free up yourself to do more business. Can you now handle more listings? Are you able to offer your clients more investment opportunities? I think so.
"For the Advanced Salesperson: Pluses and Minuses of Online Auctions." Realtor Magazine Online, November 24, 2008. Realtor.org Article URL: http://www.realtor.org/rmoprint.nsf/pages/prop15
Hwang, Haley M. "Auctions No Longer a Last Resort." Daily Real Estate News, Realtor Magazine Online, November 11, 2006.Realtor.org Article URL: http://www.realtor.org/RMODaily.nsf/pages/News2006111102?OpenDocument
Weiss, Sara. “Auctions Help REALTORS® Move Property in Today's Real Estate Market.” News Releases, Realtor.org May 15, 2008.Realtor.org Article URL: http://www.realtor.org/press_room/news_releases/2008/auctions_help_move_property
Please contact me with any questions.