ONLINE AUCTIONS VS TRADITIONAL AUCTIONS: WHAT’S THE DIFFERENCE?

BY OPENN

Imagine knowing exactly how many buyers will submit bids on your property weeks before the set sale date. Or receiving an attractive offer prior to auction day and being able to give other buyers a fair opportunity to openly compete with that offer.

It’s possible when selling via an online auction platform like Openn. Bids and offers can be submitted from as early as day one of the campaign, giving real-time feedback on how the property is tracking, so you can sell with more confidence.

By removing physical limitations, such as time and distance, and introducing more transparency into the sales process, online auctions are an effective and popular alternative to traditional sales methods.

HOW DOES AN ONLINE AUCTION COMPARE TO A ‘NORMAL’ AUCTION?

An online auction and a traditional auction both involve the sale of a property through a transparent and competitive bidding process. However, there are several key differences:

• Location: A traditional auction is held in a physical location, usually on-site at the property, while an online auction is held entirely online, with bidders participating remotely.

• Convenience: Online auctions can be accessed from anywhere, at any time, making it easier for buyers to participate. Traditional auctions typically require buyers to be physically present at the auction location.

• Reach: Online auctions can attract a larger pool of potential buyers, as they are not limited by geographic location. While phone bidders can be accommodated in a traditional auction, usually it is limited to buyers who can attend on the day.

• Cost: The fees associated with either selling method can vary. An Auctioneer is required in a traditional auction and most online auctions, which incurs a cost. However, online auctions can be less demanding on an Auctioneer’s time and resources as they can run the sale remotely, meaning they can offer lower fees.

• Bidders: While traditional auctions typically only allow unconditional bidders, some online auctions allow buyers with conditions to participate (subject to the seller’s approval).

• Timeframe: An online auction allows the bidding process to take place over a fixed time-frame, with buyers able to bid from as early as day one. Whereas in a traditional auction, all the bidding takes place on the agreed day and can take anywhere from a few minutes to a few hours to finalise.

While traditional auctions are a highly effective process for selling property, online auctions offer many benefits such as greater reach, convenience, and flexibility, making it an attractive option for sellers.

Thinking about selling or looking to buy? Search and connect with Century 21 agents using Openn on our Find an Agent portal.