Online bidding has gained in popularity in recent years and has become a widely acceptable method of purchasing real estate around the world. There are several ways that online bidding may be made available to potential auction buyers.
1. Live “Synchronous” Online Bidding
Live online bidding allows buyers to participate in a live auction without actually traveling to the property. As the auction is being conducted on location, it is simultaneously being broadcast over the internet. Bidders who have pre-registered compete directly with onsite bidders by placing their bids online. They can follow the live auction via an audio feed as well as through text prompts. The auctioneer accepts the internet bids just as though the bidder were actually present.
2. Online Only or Timed Online Bidding
When a property is being offered with online only bidding (sometimes called “timed online bidding”) bidding takes place over an extended period and all bids are placed online. There is never actually a live auction event. The auctioneer monitors all bidding throughout the bidding period (generally a matter of a few weeks). Bidders register to bid for a specific property and can place bids at their convenience. For added convenience, bidders have the option of entering a “maximum bid” which allows the computer to automatically advance their bid anytime they are outbid. At the bidding deadline, the high bidder is declared by the auctioneer.
3. “Hybrid” Online Bidding
In some instances, online bidding is used during one phase of the auction. For example, a property may be available for online bidding for a specified time prior to an auction event. When the auction event opens, the current high online bid becomes the opening bid. If onsite bidders advance the bid, online bidders may continue to participate in the live bidding via the internet.
While online bidding is very popular, not everyone is entirely comfortable with the process. Cates staff is always available to assist any bidder who has questions or needs help placing bids.
NOTE: Online bidding terms can vary somewhat from traditional auction terms. Always be sure read all auction terms carefully. Online bidding also requires pre-registration so plan ahead!