Your home is your most valuable asset. Where will you turn when it comes to maximizing that asset through a sale? Many choose the traditional, open-market route, but there’s an alternative that’s proven to offer a simpler path that’s more likely to return the true value of your home.
Online bidding has gained in popularity over the years and is a widely acceptable method of purchasing real estate around the world. The concept of buying a home online may be a bit foreign to some, which is why I want to share a few ways that online bidding may be made available to potential auction buyers:
Online Only Bidding
When a property is being offered online only, bidding takes place over an extended period and all bids are placed online. There is never actually a live auction event. The auctioneer monitors all bidding throughout the bidding period (generally a matter of a few weeks). Bidders register to bid for a specific property and can place bids at their convenience. For added convenience, bidders have the option of entering a “maximum bid” which allows the computer to automatically advance their bid anytime they are outbid. At the bidding deadline, the high bidder is declared by the auctioneer. This is a more deliberate way to host an auction, and one that again expands the pool of prospective bidders. Timed online bidding means that a prospect who may not be comfortable raising a bid in the moment has time to consider raising.
“Hybrid” Online Bidding
In some instances, online bidding is used during one phase of the auction. For example, a property may be available for online bidding for a specified time prior to an auction event. When the auction event opens, the current high online bid becomes the opening bid. If onsite bidders advance the bid, online bidders may continue to participate in the live bidding via the internet. This is the best of both worlds in the online auction world. You can capture both the deliberate bidders and those who thrive in a live environment, always capturing the greatest number of prospective buyers and achieving your best possible sales price.
While online bidding is very popular, not everyone is entirely comfortable with the process. Thomas R. Hunt Auctioneers is always available to assist any bidder who has questions or needs help placing bids.
Auction Benefits to the Seller
•Speed: The sale cycle is compressed and time specific. No longer does a home linger on the market for months. You set a date for the auction, and you gain a true value return on your investment on that date.
•True Value: There is no risk of overpricing or underpricing the property. When you choose to sell your home on the open market, you base the initial asking price on comparable properties and a gut feel. But sell too quickly, and your home may have been undervalued. A real estate auction returns your home’s true value in a competitive environment.
•Urgency: Auction heightens buyer interest and attracts attention in a crowded market. The idea of an auction taking place at a set date creates a different level of urgency as prospective buyers consider your property.
•Ideal marketing: All properties benefit from a professional, customized advertising campaign. The urgency concept lends itself perfectly to creating an effective campaign for your home.
•Attractive Buyers: Buyers come qualified and prepared to buy. In some traditional home sale cases, you can spend weeks working with a buyer who ends up not being able to afford the home – lengthening your home sale process.
•Certainty: Protracted and unknown time on the market is not a factor. The seller knows exactly when the property will sell and can plan accordingly.
•No Carry Costs: Quick disposal reduces long-term carrying costs such as taxes, insurance & maintenance. This ultimately saves you money, in addition to the extra value you capture through sale in a competitive auction environment.
•No Prep: There is no requirement to do work on the property; it sells as-is.
•No Ongoing Showings: The hassle of ongoing showings is reduced. Placing a lockbox on your door and inviting prospective buyers to come by as needed is a serious inconvenience that can be avoided through a home auction.
•No Negotiations: The headache of negotiating is eliminated. Again, the auction process allows you to capture your home’s true value.
•No Contingencies: Contingencies (inspections, financing, etc.) are not allowed.
If you would like to speak with me about a specific property you are considering selling at auction, get in touch with me any time at 270-796-7550 or at pthessen1@gmail.com.
Personal property auction services are also available for our real estate clients. Visit www.sellwithhunt.com to see our upcoming auctions.
-submitted by Perry Thessen
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