3 Different Types of Online Bidding for Property Auctions
Are you thinking about selling or buying a home during an auction? If so, you may have quite a few questions that pop up your first time around. For example, how do these auctions work? Or what are the bidding options for an online property? Luckily, we have answers to these common questions and more so you can make sure you’re prepared for your next online or in-person property auction. Follow along with Joshua Kodner for the inside scoop!
Debunking The Myths
Before elaborating on how these property auctions work and what kinds exist, it’s crucial to clear the air. Contrary to popular belief, not all homes being sold in property auctions are foreclosures or all dilapidated. Some homeowners prefer to sell their homes during an auction to ensure a higher payout, as well as speed up the process. Homes that are sold through auction sell much faster than homes that are sold through a realtor and are put on the market.
Auctions are great for sellers because many of the buyers who attend these bidding wars are serious. No need to worry about window-shoppers—isn’t that nice? Property auctions, especially those online, are sought out because not only do properties sell fast, but there is a sense of transparency. Each bidder must register before the auction and must also pay a deposit among purchasing.
The Types of Bidding:
1. Live Bidding
The first type of online bidding for a property auction is live online bidding, also known as synchronous bidding. This type of action happens in real-time, either in person or online. Many property auctions are now a mixture of both: there is in-person bidding that takes place at the location of the property, which is live-streamed to an online audience who can also bid. There are no downsides to either as one bid doesn’t outweigh the other. All bidders, either online or in-person, must go through a registration process to ensure seriousness and as a precaution.
At the end of the auction, the auctioneer goes with the biggest bid. Pretty straightforward, right? The other option is what kind of auction you want. There are two types, essentially: absolute auctions and minimum bid auctions. Absolute is in the name—anyone can bid absolutely any amount, and the highest bid will win. Minimum bid auctions require a minimum amount to bid, such as $2,000 for example.
Learn more about Joshua Kodner Galleries, the top-rated auction house in Dania Beach and Fort Lauderdale, Florida.
2. Online Only
The other type of online bidding is strictly online—no in-person bidding occurs. Instead, an online bid war moderated by an auctioneer begins, with the auction lasting a certain amount of time. These online bids tend to last longer than a traditional in-person auction event, about a few weeks. Depending on how you set up your auction, online bidders can bid any amount (absolute auction) or bid the minimum amount (minimum bid). It’s up to you or to the homeowner what kind of bidding wants to get done.
3. Hybrid Online Bidding
The last type of online bidding is a hybrid. It’s a bit like synchronous bidding, but different. The bidding starts out online, days before an in-person auction event. When the in-person event starts, the highest online bid becomes the starting bid. Online bidders can continue to bid once the auction event begins, but the emphasis of the auction would continue in person.
Related Post: The Pros and Cons of Property Auctions
Picking the Right Auction House
When it comes to auctioning your home—either online or in-person—it’s important to go with someone you can trust. It’s this reason of trust and expertise that got auction house Joshua Kodner in the business. With decades of familial experience and a highly experienced team, you can trust Joshua Kodner to not only get the most bang for your buck but also streamline the process to make it as stress-free as possible. Contact us today for more information about our auction house if you’d like to buy or sell.
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