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. During the previous years, 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.
Online real estate sales were not feasible in the past due to lack of availability of appropriate technology, because there is no platform dedicated exclusively to real estate.
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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 old method of selling real estate has less transparence. Buyers never know what the other will bid 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 fast 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 period.
With the technology auction, Realtors can offer new value-added services using Internet technology, develop their business, and generate additional revenue streams.