In Canada, real estate auctions have a good rate of effectiveness, particularly for investors in obtaining a good deal on property. Nowadays, however, such a way of acquiring real estate properties not only is popular among affluent and well to do investors and buyers, but also for those who are looking to finally obtain their own home at the best of price.
In today’s time of digitalization, live auctions are now moving to online platforms at a faster pace. Previously, they took place at either local courthouses or other locations desired and chosen by auctioneers.
New real estate auction solutions are helping buyers, sellers, investors and ordinary home buyers alike in the search of attractive, foreclosed or bank-owned as well as short-sale properties in a quick and hassle-free manner. As per the findings of experts from a firm of mobile app development Toronto, these solutions also help them place bids on them.
Let’s consider the example of Auction.com (which is a Ten-X company). It is a United States based auction marketplace website that has a core focus on foreclosed and bank-owned properties. Up to now, the platform boasted around USD$ 39 billion in sales, 4.4 million registered buyers, and around 329,000 properties sold.
Despite the fact that players like AuctionFox, Auction.com, Foreclosure.com, Hubzu, and RealtyBid.com, have arrived, there is still a lot of room in the online auction space.
This article will explain briefly how a real estate auction site or app can be made as a standalone solution. We will also see how auction functionality to an existing real estate platform.
What do property auction platforms offer on a usual basis?
Usually, property auction services such as Xome, Auction.com, and AuctionFox offer the following kinds of properties:
This is a property sale initiated by a homeowner (often distressed borrowers) as a way to sell the house for less than the outstanding mortgage on it. This move is usually needed required for a borrower to their debt to a lender.
Unlike other kinds of sales, a short sale can be of benefit to both the lender and the borrower. It allows the lender to avoid possessing the property again in foreclosure (expensive and time-consuming). At the same time, it makes it possible for the borrower to avert harm to the credit line and averting bankruptcy too.
This sale is forced by a lender in their attempt to recover the balance of a loan by themselves. A foreclosure, which can involve a lender seizing a property, is often the last step of an extensive pre-foreclosure process, which is typically aimed at finding alternatives for both lender and borrower to avert any and all negative consequences with this legal process.
Properties owned by banks and real estate organizations
They are properties taken into a bank’s ownership after a foreclosure sale’s failure. These properties are often accessible easily on banks’ websites and on real estate auction platforms too. These properties are sold at discounted prices, making them attractive for real estate investors.
Though most homes sold online are distressed sales, not all real estate auctions are in this category. Flipped properties are investor-owned homes that are fixed, renovated and readied for sale. These remodeled and upgraded homes are quite popular among first time home buyers.
They are the other kind of non-distressed sales which are usually used for shopping centers, stores and other kinds of businesses (including the service ones). Such kinds of properties is popular among business owners and investors seeking to expand their portfolio along with new investors in commercial real estate who wish to acquire a portfolio.
Features of an effective real estate auction platform
The real estate auction platform should help buyers and sellers easily meet each other and ensure smooth interactions leading to the deal getting closed and finalized. Buyers need a smooth bidding experience and they also need to the platform to be as safe and secure as it can be.
In terms of sellers, they want the platform to have powerful functionality to facilitate their work and help them work effectively (app ideas).
Hence, here are the features:
- Creation of User profiles
- Listing properties
- Property search.
- Bidder dashboard.
- Auction Calendar.
- Selling to earn money.
- Ensuring user mobility.