The Emergence Of Online Auctions In The Real Estate Industry
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 National Association of Realtors, a real estate auction is now 21.5% of the auction market as a whole.
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. You can also read more here to know more about buying and selling property through online auctions.
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The traditional method of selling real estate has less transparency. Buyers never know what are 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. There is no pressure on the buyer to bid on a timely basis so that the house was on the market for a longer time.
With the technology auction, realtors can offer new value-added services using Internet technology, develop their business, and generate additional revenue streams.