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If the pandemic has taught us anything, it’s that the future of property auctions is digital. From live-streamed auctions to online viewings and bidding, the industry has been dragged into the 21st century and online auctions are here to stay.
What are online auctions?
There are two types of unconditional auctions that take place online. Live-streamed auctions and online auctions.
Live-streamed auctions are most like a traditional in-room auction (sometimes they are hybrid auctions taking place both in-room and online). The auctioneer is filmed auctioning the lots and the video feed is shared online. Buyers can bid in room (if applicable), on the phone, by proxy or using online bidding software.
Online auctions are timed auctions where bidding takes place online only. Once bidding opens, the auction runs for 24 hours with a set closing time. Buyers use eBay style bidding to submit their bids in pre-set increments. Buyers who can’t make the auction can set a maximum (proxy) bid and the system will automatically bid on their behalf.
What are the benefits of livestreamed/online auctions?
There are two major benefits to online auctions. Convenience and accessibility.
Before online auctions, buyers had to be able to travel to and attend a full auction event to bid on a property (with no guarantee of success). Not only can this be inconvenient, but it also restricts who can attend and bid, as auctions often take place during working hours.
Whilst bidding by phone and proxy are an alternative solution to attending in person, bidding online offers complete control for the buyer.
Today’s consumer craves efficiency and demands quick processes and instant results. Online auctions offer this in abundance.
Are in-room auctions redundant?
Nothing quite compares to the thrill of an in-room auction. For the auction customer of today, in-room auctions still serve a purpose and for some are the preferred method of buying and selling property. But there’s no denying that the auction customer of the future is likely to be drawn more to a digital experience.
The pandemic taught us that we don’t need in-room auctions to successfully auction properties. The only element missing from an online auction currently, is the atmosphere from an in-room event. However, as technology advances and is embraced by the industry, it’s likely that in the future, the online auction experience will rival an in-room auction atmosphere and in-room auctions could conceivably be a thing of the past.
Jeremy Prior is Managing Director of Auction House (UK).
For more on how to sell property via auction online, click here.
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