It wasn’t long ago that becoming an “auctioneer” seemed like an impossible feat for many real estate professionals. However, as technology enhanced, online bidding platforms began to emerge on the scene and changed the landscape of the traditional auction industry. Today, online auctions are growing in popularity amongst REALTORS®. These auctions are used as a marketing method that not only creates acceleration and excitement, but also convenience for clients.
Auctions are an effective marketing method for most property types and have proven to work well in real estate. An increasing number of real estate brokerages see the value in offering a wider range of solutions to their clients, which include auction services. Online bidding platforms have also solved many challenges for real estate companies as they expand their service offerings to include auctions.
The primary advantages that online auctions have over the traditional live (out-cry) auctions include:
Many have said that the primary barrier to entering the auction profession is that they have no desire to stand up and call for bids in a crowd of people. Online auction platforms forego the traditional live chant of the auctioneer. All bidding is facilitated electronically, creating a larger opportunity for the real estate community to leverage the auction method of marketing.
A mainstay in the live auction profession is the speaker system, which allows an auctioneer to be heard above the noise of the crowd. Online auctions remove the need for expensive equipment.
Facility Rental and Logistics
If you’re dealing with inclement weather or a hard to access remote location, onsite logistics of a live auction can be a concern. There’s typically a need for concessions, seating, tables, restrooms and climate control—all of which need to be managed during live auctions. Regardless, if you’re conducting an onsite or offsite live auction, the day of auction logistics can be removed by implementing an online-only auction event.
When conducting a live auction, staffing needs include an auctioneer, bid spotters, clerk and registration agents. An online auction eliminates these needs, saving you money.
We’ve integrated both live and online auction solutions into our core-service offerings for more than 15 years. These services have allowed franchisees access to auction programs such as online bidding platforms, project marketing, development and event training, auction supply discounts and more.
As the industry continues to evolve, we expect the auction method of marketing to take a much larger role. Real estate auctions are continuing to become more widely recognized as a powerful alternative to traditional sales strategies.
Shawn Terrel is president of United Country Auction Services. He is a former board member for the National Auctioneers Association and a graduate of the Missouri Auction School and Texas Auction Academy. He holds both his Certified Auctioneers Institute (CAI) and Accredited Auctioneer Real Estate (AARE) designations. For more information, visit www.unitedcountry.com.