When the government annouced a ban on public auctions and open houses as part of its measures to deal with the novel coronavirus (COVID-19) pandemic, many properties switched to private treaty, and many more pulled out.

However, a small but growing number of auctions are switching to virtual (online) auctions as the market adjusts.

So, here’s everything you need to know about online real estate auctions.

Virtual Real Estate and Virtual Tour:

Virtual real estate allows hundreds of potential buyers to ‘walk’ through a property on their smartphone or computer. They can view the property in full 360-view from the comfort of their own home.

It’s significantly more comprehensive and realistic than photos and allows you to get a full view of every angle of a property almost like you were standing in it yourself.

You can surf through virtual real estate websites and tour the properties. Registering for online auctions is easy as well.

There are plenty of websites where you can simply complete the registration form and once verified, you will be able to bid.

Advantages/Disadvantages of online real estate auctions:

An online real estate auction is a natural and intuitive solution for buyers and sellers. Buyers are already comfortable conducting their property research and due diligence online, so an online transaction makes sense.

It’s a secure, fully compliant process that enables buyers to bid in an auction wherever they are, meaning increased buyer reach and participation, resulting in better outcomes.

A virtual auction is a valuable tool for the real estate industry designed to benefit buyers, sellers and agents. It’s a natural evolution in real estate transactions.

Benefits:

  • You can view your next home from the comfort of your lounge.
  • You can be contact-free and risk-free while continuing to sell and purchase property during this time.
  • While each bid is visible online, the bidder’s details remain confidential at all times.
  • Virtual auction is a secure and legally compliant platform, with genuine identified bidders and enforceable contracts.
  • You can watch and bid multiple auctions at the same time.
  • The final call countdown means buyers always have the chance to bid before the auction closes.
  • The virtual auction is open 24/7 for bidding or managing the bids from any location.
  • Online auction websites feature user friendly and intuitive with simple guidelines.
  • Virtual property auction runs over several days giving all participants valuable time and comfort.

Drawbacks: