A Seller’s Guide to Effective Online Auctions

How to Sell a Property via Online Auction

Traditional real estate auctions occur on the steps of a local courthouse, in a hotel ballroom or in front of the property up for auction. This type of on-the-ground auction has several limitations. First, potential buyers have to visit the local courthouse to access due diligence materials like plat maps and assessments. Second, the advertis ing for these auctions tends to be focused on the local market, so out- of- town buyers seldom know about them . Third, even if out-of-towners know about the auction, they have to travel great distances just for a chance to bid, and they risk going home empty-handed . Finally, if potential buyers want to bid, they must adjust their schedules to physically attend the auction, often waiting for hours before their desired property opens for bidding. Some buyers tell stories of standing in the rain or snow for hours, just to place their bid on a property.

Fortunately for today’s property owners and buyers, the Internet has revolutionized the real estate auction process. The Internet allows potential buyers to research all types of properties, view photographs and due diligence materials online, and participate in auctions nationwide, 24 hours a day, all from the comfort of their home or office. Quite simply, it is one of the easiest ways to transact real estate. Every year, more and more properties are being sold by online auction, and now sellers can choose from multiple real estate auction Web sites to expose properties to a worldwide market.

How can you get in on this new trend? It is easier than you may think. Preparing to sell your home or investment property via online auction begins much like selling it through traditional means . Clean your property as thoroughly as possible, both inside and out, being sure to remove all debris and clutter. Take c lear photographs; they are crucial for selling property online. Pictures will “tell the story” better than any text and can make or break a sale.

Follow the checklists below for important information to include in your online auction:

Residential Homes and Condominiums

Provide basic property information such as the street address, number of bedrooms and bathrooms, living space (in square feet), lot size (in acres), and any other special features (i.e., fireplace, hardwood floors, granite countertops, swimming pool, corner lot, located on cul-de-sac, etc.).
Explain why a person would wish to live in this area.
Identify local schools, community features, and shopping along with their proximity to your property. Also address access to highways and public transportation.
Discuss the costs connected to the property (taxes, HOA dues, condo fees, approximate costs of utilities, etc.).
If the property has a tenant or is in a strong rental market, provide a breakdown of rental income and expenses (expenses may include property taxes, maintenance, etc.).
If the property is a fixer-upper, be sure to mention the necessary work required and approximate costs.
Take multiple photographs. Be sure to take pictures of the front and back of the home, the main interior rooms, and any unique features.
If you plan to hold an open house, include the date and time in your auction description.

Vacant Land
This checklist should also be used for improved property (land that has been built upon), in which the predominant value of the property is the land itself and not the structure(s).

Provide basic property information such as lot size (in acres), lot shape, whether the lot is treed or cleared, and any special features (good views, adjacent to noteworthy property, etc.).
Provide an address, parcel number, and/or “legal description” of the property.
Obtain a plat map from your county assessor’s office. If it is not available electronically, you can use a scanner to digitize the map for inclusion in your auction.
Explain what utilities are available to the property. If sewers are not available, disclose whether the property has had a perc-test (for a septic system).
Contact your county zoning office. Verify the zoning code and what it allows for.
If the land is ready for development, tell why a person would wish to build a home is this area, describing local schools, community features and shopping.
Take several photographs of the property, the street on which it is located, and area attractions. Your main image should show the most appealing view of the property. Think of what you would want to see if you were a buyer!

Many online resources can help you gather information and perform due diligence for your auction. Google has free satellite maps, while Microsoft provides 3D satellite maps. Zillow provides a free “property valuator” that tells you the approximate worth of your property . RealtyTrac also provides a free home value analysis and offers Premium Property Reports for determining the value of your home. Zillow also provides free information on recent local sales and active listings in your area, both of which can be helpful in pricing your auction. You can provide links to these tools directly in your online auction.

Bid4Homes.com, which is powered by Bid4Assets.com, is the leading real estate online auction Web site for financial institutions, real estate sellers, and private investors. Visit Bid4Homes.com today to get started!

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How to Sell a Property via Online Auction