AGBeat’s Tara Steele covered it and we couldn’t have explained it better ourselves. The momentum and involvement on ListedBy is moving to new heights each week. Traffic is on track to hit 40,000 unique visitors this month or more, and Realtors, consumers and real estate investors are engaging more and more with the system’s Best Offer and auction tools.
From AG Beat:
ListedBy auction tool focuses on transparency, disruption
Online real estate auction is emerging as the next power tool in real estate marketing and sales. 58 billion in sales in 2011 and projections by NAR that one out of every five transactions will be in auction by 2014-15 sets the tone for the years to come.
The sweet and short of it is that because auction buyers are typically cash or finance-ready, and because online auctions reach buyers across the U.S. and the world, deals can be reached far more quickly. So in essence, REALTORS® and real estate investors who participate in online auctions benefit from being in a position to buy and sell more real estate, in less time.
All Real Estate Auction Platforms Are Not Created Equal
As a real estate professional, you’re constantly looking for faster, better and cheaper ways to conduct business. Traditional online auction platforms and services have typically been cumbersome and time consuming to participate in, not to mention the high cost imposed on both sellers and buyers. All of these can be key reasons why auction as a strategy could not realistically make it to many REALTOR® listing presentations.
Simple Works – The world of auctions has evolved, and consumers everywhere have become familiar and essentially are now more comfortable with auction buying or selling through marketplaces like eBay and others that have made it extremely easy. The auction process is no longer alien to the masses, and it is only realistic to expect a pick-up in auction activity in real estate as well. This move has already begun and continues to gain momentum.
Look for an advanced real estate online auction platform that allows you to join and participate very easily. A simple registration process, simple to use tools and a 100 percent online environment is a great start. Cumbersome and demanding registrations, advance commitments, add-on offline service components and services might be your early signs to skip this dive. The world has moved on, so should you.
No Fee Environments – The days of getting charged through the nose to list a property in auction, or to participate in one, are over. They are gone. This is your next big warning to skip this dive too. Buyers who have been used to paying between one and ten percent (yes you read that right) on the value of their purchase are now more likely to engage – and perhaps pay a bit of a premium for a property in a free environment, than to dish out an extra eight percentage points to the organization that is simply facilitating the auction. New models such as ListedBy.com have done away with all fees for both buyers and sellers, which stands to accelerate the adoption of online auctions as a whole, and optimize property values as more dollars become available to go towards the value of the asset than corporate cash registers.
Transparency – Does the platform you are looking into allow you to see who is bidding on a property and what the price levels are? Can you see a profile and online consumer ratings of all the participants? A transparent online auction marketplace should give every participant equal weight and chance, and a sense of comfort and confidence. Alternatively, it’s a capital SKIP!
Networking and Lead Management – One last item we should cover in the context of this article is whether the platform you are considering is strictly a short term buy/sell solution, or a long term environment where you can strategically position yourself to grow your brand, run your real estate marketing, cultivate and manage a solid business network, and establish yourself as an expert in the online auction arena. In today’s day and age, a truly effective online real estate auction platform should put such tools at your fingertips, and for free as well.
Now you can dive with confidence.