Online auctions growing in popularity with sellers & buyers
With property markets around the globe significantly impacted by Covid-19, online auctions are proving to be a viable option for property buyers and sellers.
“Being an established online auction platform means we’ve been able to continue trading and have in fact seen an uptake in buyer interest and activity. This includes more cash buyers, with more people viewing properties online and even purchasing unseen,” says MC du Toit, CEO, BidX1 South Africa.
He thinks those companies which operate online will remain at the forefront following the lockdown as the business environment has changed overnight.
“We believe the auction method of sale will now, even more than before, be the most effective method of sale for any property. Technology has never been more important for our industry, enabling us to adopt to more agile and secure ways of working.” For buyers and sellers, the online auction method has gained traction both globally and locally, resulting in sales being concluded quickly and without restrictive conditions.
Private treaty bidding
“Our platform also includes a section where buyers can make direct offers before an auction date has been set.
This is via the ‘private treaty’ tile on our website (bidx1.com), which allows for buyers to make offers immediately on a property. Should buyers make a fair offer before an auction date has been set, the property doesn’t need to go to auction and can therefore be sold immediately through the platform,” Du Toit says.
“This is a trend we expect to continue after the lockdown. As with auctions, this transparent method of online sale allows the seller to determine the true market value as buyers compete against
each other for the property.”
Du Toit says that buyers naturally want to transact at a price level they feel comfortable with. “On the BidX1 online platform they can do exactly that. Whether via private treaty or auction, they are able to see all other bids as they come through.”