By Robin Liu, Jan 13 of 2020
Internet Bidding has been very successful for selling goods since 1995, but not for selling real estate until 2008.
Internet bidding has been used by eBay for buying and selling goods and services worldwide since 1995. Buyers and sellers all enjoy the continence and efficiency of online auctions. Since auction is not the conventional way of buying and selling real estate, Internet bidding did not have a successful story in selling real estate until 2008 when the real estate bubble burst. For a long time, people have the myth that auction is the last resort and only works for distressed properties.
Internet bidding has been successful for selling real estate since 2008, but only for selling distressed properties.
In 2008, Auction.com took the lead in conducting online real estate auctions, but Internet bidding was mostly used by auction.com for the disposal of distressed properties.
Since 2008, foreclosures have flooded US real estate market and several companies like auction.com have been very successful in using Internet bidding to dump these distressed properties, which also made auction a more widely accepted sales method. In recent years, auction.com has begun to sell non-distressed properties by online auctions, and they have been doing very well so far.
Nowadays, distressed property has not been the only type of asset that can be sold by auction. More and more non-distressed properties, including residential, commercial assets as well as agricultural properties, are being sold at auctions. In Australia, auction is the prevailing method of buying and selling real estate. Obviously US have been going that way after the burst of real estate bubble.
What will happen when mobile Internet bidding is used for real estate transactions?
With Internet bidding, bidders can submit bids without personally attending the auction. However, online auction requires bidders to submit a bid and then wait for the next higher bid, sometimes bidder has to wait for a few days, sometimes just a few seconds. With mobile Internet bidding, bidders can submit a bid at anywhere any time, and then they can go anywhere and do whatever things they want to do, as long as they have access to mobile Internet. A bidding App can be developed to further facilitate the continence and easiness of mobile Internet bidding.
More than 60 % of Internet Traffic Now Comes From Mobile Devices
Technologies are evolving in an accelerated speed, which is also changing the way people use Internet. Nowadays more than 60% of Internet Traffic comes from mobile devices like smart phone and tablets. A comScore report said, as of May of 2014, smart phones and tablets combined has now accounted for 60 % of all Internet traffic, up from 50 % a year ago, and 51 % of that traffic is driven by mobile apps. That tells us that the way people use Internet has changed significantly.
With more and more people using mobile Internet, and auction becoming a more and more widely accepted sales method for real estate, what will happen when mobile Internet bidding is used for real estate transactions? Undoubtedly mobile Internet bidding will boost more and more real estate transactions moving online, which will also result in more real estate transactions by auction sales method, and less transactions by conventional negotiated sales method. In the near future, we will also see the majority of real estate transaction goes online.