Online Auctions – The New Way of Buying and Selling a Home
In the COVID-19 world we now find ourselves in, public real estate inspections and auctions have been banned or restricted to encourage social distancing and help stop the spread of the virus. As such, the real estate market has had to adapt and find new ways to operate in line with the restrictions. While online real estate auctions have been around for years, they have now become a necessity. At PRD Nationwide, we have made the switch to a primarily digital environment, so if you are looking for a property for sale in Canberra, you can be sure your safety is our top priority. While essentially online auctions are similar to traditional auctions, there are some things which must be done differently. Let’s take a look at how virtual auctions work and how you can still secure the perfect Canberra property.
What Is an Online Auction?
Online auctions in Australia are very similar to traditional in-person auctions, but without the need to be physically present. There are no crowds, it is simply the auctioneer and the agent in a room (generally the office or the property), equipped with a camera and computer to live-stream the auction. Potential buyers place their bids from the comfort of their own home while watching the video as if they were there. The seller is able to log into the virtual auction platform to follow the interactive bidding happening in real-time. Another method involves buyers sending off bids, similar to eBay, and the time allotted for the auction is extended by five minutes every time a bid is entered.
How Can I Participate in an Online Auction?
When a property is listed for sale, the listing should also appear on the online auction platform that will host the event. The selling agent will advise the link. Buyers must register on the online platform and they can do this right up until the start of the auction. It is recommended that potential buyers register early and become familiar with the platform and even watch a few auctions prior, so they feel comfortable when bidding. If you need any advice or have any questions on participating be sure to contact the selling agent a few days prior to the auction.
Is The Bidding Process the Same?
The bidding process is exactly the same as traditional auctions, only the face-to-face element is removed. As with traditional on-site auctions, the auctioneer is ultimately the conductor and he/she can suggest increments to rise by, can accept or deny bids, and ultimately control the direction and the outcome of the auction. The flow of bids and the process of bidding is very similar, and buyers should feel comfortable bidding from behind a screen.
Are there Any Benefits to Online Auctions?
Online auctions provide the safety, comfort and convenience of being able to bid from your own home or anywhere you have access to a mobile device. Not only beneficial in allowing for the social distancing restrictions many Australians are faced with, it also reduces the pressure and competitive environment that buyers would traditionally have to face. Online auctions also allow for buyers consult with advisers that might not have been able to attend the on-site auction with them, this will help attract more serious, quality buyers.
Are Online Auctions as Successful as Traditional Auctions?
As with traditional on-site auctions, the success will always come down to the skills and expertise of the agent and auctioneer – this is something that will be sure to stay the same, even in an ever-changing real estate world.
Unsure about bidding online? Need some further advice on buying or selling via an online platform? The team at PRD Nationwide are here to help. As Canberra’s most trusted real estate agents, if you are looking to secure a property for sale in Canberra, get in touch with us today. Give our friendly team a call on (02) 6262 5232 or send us an enquiry online.