Over the past few years, there has been substantial growth in the number of auctions held and the value of real estate properties sold at auction. According to the real estate agents, a real estate auction is now 21.5% of the auction market as a whole.
One out of every three properties is expected to be sold using an auction model. This trend is increasing for online auction and is likely to continue because of the benefits of online property auctions.
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Online auctions are not feasible in the past due to lack of availability of appropriate technology, because there is no platform dedicated exclusively to real estate.
Recently some companies have developed a proprietary platform and utilize them to perform their own auction business. Real estate brokerage firm until now traditionally have no or little access to technology.
The traditional method of selling real estate has less transparency. Buyers never know what the other bids so that they do not know what they contend.
Sellers do not know if they get a good price for the house because there is little competition between buyers. Sellers generally want to sell a house quickly for several reasons including a new job, family, etc. but must often put their lives on hold because it usually takes a long time to sell their homes.
With the online auction, agents can offer new value-added services using Internet technology, develop their business, and generate additional revenue streams.