Your guide to online auctions

09 April 2020

While things are changing weekly, or sometimes even daily for us during this Covid-19 crisis, we are constantly evolving and finding innovative ways to service our clients. One of those innovations includes implementing online auctions. Under the new regulations, traditional auctions have been suspended, along with gatherings of more than two people. So to sell a home via auction at this time – one of a few sales strategies that we recommend employing to achieve a premium price for our clients – we need to look at the digital alternatives that are available.

For many owners, online auctions may seem a little daunting when compared to the traditional experience of watching your property being sold on the front lawn in front of a large crowd. But like many facets of our lives in a Covid-19 world, this change could end up being more of a permanent fixture once this crisis is over. Online auctions are extremely simple and as long as the seller and buyer are onboard, it’s an effective platform that we can utilise to facilitate a sale under auction conditions.

The process:

Your agent will send out the registration link to all prospective buyers a few days ahead of your scheduled auction, so that all interested parties can pre-register as bidders for your property in advance. The pre-registration process will vary slightly depending on the platform used – Cunninghams has access to several of the top online auction platforms and your agent will choose the most appropriate option for your campaign (each platform offers slightly unique features) – but as per a normal auction environment, the documentation and proof of identity required to be provided by prospective purchasers is standardised.

Prior to the auction commencing, all registered bidders, as well as interested parties who wish to live stream the auction (they can do so without needing to register), will use your property’s unique URL to follow along remotely. At the designated time, the auction will take place much like those held on the footpath, in a front garden, or at a third party venue. Bids are streamed in real-time, and instead of waving a hand or nodding, buyers can make their bids on a computer, tablet or a smartphone via user friendly bidding buttons. If required, some agents will also encourage telephone bidding and most platforms have the ability to live stream video footage of the auction. Just like a traditional auction, the same legal obligations apply to both the seller and successful bidder.

Once the property is sold, we are able to fully execute the contracts for sale digitally. What this means is that you are no longer required to physically come into our offices and sign a paper contract as our platform allows legally-binding documentation to be signed digitally by all parties.

We hope this answers a few of your questions around how online auctions works, however if you have any further questions on this method of sale, please don’t hesitate to get in touch on 02 9949 7077.