After 14 years of working in the computer industry, I was naturally drawn to the concept of online auctions when I got involved in real estate. I've spent the last 4 years using online real estate auctions and here are some more answers to common questions about them.
Q) Aren't auctions just for properties that need a lot of work?
A) No, not anymore. I'm starting to see auctions for brand new properties from builders and banks who just need to get rid of them. Owners of any type of property, who are motivated and must sell quickly, are turning to auctions for a solution.
Q) How long does an online real estate auction last?
A) Typically about 3-4 weeks. It depends on how well you plan your marketing campaign and how many open house "previews" you plan to do.
Q) Do I need a special license to do an online auction?
A) In every state, you need to be a licensed real estate agent to sell any property other than your own. Each state has different rules. New Hampshire is the only state that I've heard that requires you to have an auctioneer's license to hold an online auction.
Q) Aren't online auctions just a fad that will go away when the market gets better?
A) I don't think so. I think there are more auctions today than ever before because of the current market. However, I also think they provide a solution that is needed in any market, and sellers will find they are an excellent option for a property in high demand too. There are lots of examples on Ebay of a unique item selling for some crazy amount. What owner or real estate agent wouldn't want to watch hungry buyers fight it out online?
The other thing to realize is that the Internet is not going away. The younger generation is more affluent with it than ever. They will begin to expect more real estate transactions to move online. Online bidding for real estate will be a big part of that.
Thanks for Reading! In the next few days, I'll share some more FAQ's