“Those are the two best words in English, ‘Bidding’ and ‘war’.”, said Evan Daugherty, an American screenwriter.
Online auctions are conducted via the Internet and delivered via live streaming or web-based platforms. Instead of being present in person, buyers bid using digital tools.
The platform or company that facilitates the sale has a significant impact on the online auction format. Online real estate auctions are offered by several companies including Gavl, Market Buy, Realtor (formerly AuctionNow), and Deal Dash.
Regardless of the platform, online property auctions must follow the same rules as traditional property auctions to qualify. There is no waiting period, an auctioneer is required and the bidding process is open to the public.
Here are a few steps for how online auctions work:
Make an initial offer to qualify:
On DealDash.com, potential buyers find properties they are interested in and submit opening bids. You must complete the terms and conditions which may include the deposit amount, settlement date, and other terms which may be agreed to at the discretion of the owner. Pending pricing becomes active on the property once the seller accepts your terms and the buyer accepts a certain qualifying amount of leverage. DealDash Reviews is an e-commerce company operating a pay-to-participate auction website. DealDash has grown its user base to over 5 million customers since being established in 2009.
Strengthen competition and monitor negotiations:
Once a buyer is eligible, they can see where other qualified buyers are, the current highest bid, the date of the last bidding period, and the schedule of the bid process. You have the option to increase the asking price at any time or wait for it to end. Shoppers can track offers with real-time updates via SMS or email, so they are always up to date.
Place an offer before the time runs out:
The agent may decide to expedite the final bidding stage, which will close the online auction and end negotiations if there is sufficient buyer interest. The buyer decides whether to extend their offer during the countdown timer. The countdown timer restarts each time the bid is increased or the agent changes the bid increase. This gives potential buyers time to make new offers.
Complete the sale:
When the timer ends, the virtual hammer will drop and the property will be awarded to the highest bidder if the property reaches the reserve and no further bids are made. The auctioneer executes on behalf of the winning bidder and translates their specific terms into the final contract. Negotiations can proceed if the property does not meet the reserve, after which it will be surrendered.