In the ever-evolving world of real estate, the traditional method of selling properties at a fixed price is being challenged by an exciting alternative: online auctions. Both methods have merits, but selling property through an online auction can yield better prices and values, while creating a more transparent and accurate sales process. While 8 in 10 homebuyers continue to rely on a broker for help purchasing a home, purchasing via an online auction is an attractive alternative. A 2021 survey found more than 60% of buyers would be open to purchasing a property via an online auction. For public sector organizations selling surplus property, an auction offers a transparent and fair process, which can boost stakeholder confidence, trust and goodwill. That goodwill is incredibly valuable!

Using ePropertyPlus property portfolio management software for auctions

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We recently enhanced ePropertyPlus, our cloud-based property portfolio management software solution, to support two kinds of auction events. One is a live event, where bidders compete head-to-head until one bidder wins out. The event remains active as long as there are competing bids. The other is a timed auction event, where bidders can place bids up to a specific deadline. Both are managed online through ePropertyPlus Public Site.  

As bids are submitted, ePropertyPlus updates the current high bid and lets bidders know how much time is left in the event, so they can decide whether to submit a competing bid. Sellers can also set rules on who participates, making sure auction events conform to stated policy priorities. Subscribers can set up pre-auction applications or simply open the auction to whomever shows up and registers for an account on the ePropertyPlus Public Site.

Setting up an auction event is quick and easy. Simply select a property and designate it for sale in the auction event. ePropertyPlus walks users through the remaining set-up steps and the entire process takes less than 5 minutes. Auction functions are integrated with other ePropertyPlus features and functions, like Public Site Applicant Portal, document generation, system email notifications, and more. This makes it easy to sell using auctions or a fixed sales process and to manage the entire process end-to-end from within ePropertyPlus.

In this blog, we explore how the dynamic atmosphere of an online auction can work wonders for sellers using ePropertyPlus.

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Competitive Bidding:

One of the most compelling reasons to choose a live auction is it encourages competition. Potential buyers are drawn to the urgency of the event, which in turn can lead to spirited bidding. As bids go back and forth, a property's ultimate sale price can go well beyond what the seller might have initially expected. And even if the auction results in a handful of bids and at marginally higher prices, the total results can add up to real revenue.

True Market Value:

Live auctions provide a platform where the property's true market value can be realized, because potential buyers set a property's value collectively. The results are a more accurate reflection of a property’s value and auctions further eliminate the guesswork that can go into setting offer prices. Once a minimum asking price is set, the rest is up to the bidding public.

For local governments selling property, an auction allows them to establish the true value of a property easily and at the point of sale. We think this will be increasingly important in the post-Tyler v Hennepin environment, especially if sales generate surplus or excess value over the seller’s total project costs.

With ePropertyPlus, the seller would document its total project costs prior to the auction and use that to set the minimum asking price. After the auction, the seller could easily account for any surplus proceeds very easily. In the event anyone raises an objection or lays claim to excess proceeds, resolving the claim would be straightforward, since everything has been documented in ePropertyPlus.

Transparency:

Live auctions offer transparency in the sales process. Buyers can witness the bidding process in real-time, which fosters trust and confidence in the seller. This transparency should minimize skepticism about the sales process and encourage higher participation in future sales events. In our experience, loss of stakeholder confidence or allegations of impropriety can impose huge costs to public sector organizations and recovering trust is not easy.

With ePropertyPlus, all bidders and bid amounts are tracked, creating a clean audit trail. In the event a participant does question the process, it is easy for the seller to show the audit history and prove the process was fair and above board. It is also easy to negotiate with bidders in the reverse order of the winning bid. If the highest bidder does not complete a transaction, it’s easy to quickly move to the second-highest bidder. No need to relist or schedule another auction event.

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Better, More Efficient Buyer Experience:

Auctions are efficient. Property sellers appreciate the swift sale process: no long negotiations and prolonged listing periods. A live auction can result in a quick and decisive sale, allowing sellers to move on to their next venture sooner. Auctions should also result in faster closings, especially if bidders have pre-auction deposits at risk. ePropertyPlus auctions also take place online, so bidders can participate conveniently and comfortably from wherever they are accessing ePropertyPlus Public Site.

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Marketing Boost:

A live auction can be a powerful marketing tool. It generates buzz and interest in properties and can draw in potential buyers who may not have otherwise considered them. The event itself is a marketing opportunity and the fact the seller is using a live auction can create a memorable impression in the public eye. That positive impression has residual benefits lasting after the auction is complete. ePropertyPlus auction events on Public Site can drive traffic and visibility to properties being sold at auction, as well as those that are being sold or offered using other approaches.

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In Conclusion

Selling property using online auctions offers numerous advantages over the traditional fixed-price method. For ePropertyPlus Subscribers, auction capabilities serve to extend the existing operating power of ePropertyPlus and generate more revenue from the sale of property. If you're looking to maximize your property's potential and improve your overall property portfolio management strategy, consider adopting ePropertyPlus, where the true value of your property can shine. To learn more about how ePropertyPlus can accelerate your property portfolio management strategy and drive better sales results using auctions, get in touch! We’d love to show you all the wonderful things ePropertyPlus software can do for you.

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