Real estate auctions accelerate the selling process, making it a win-win proposition for everyone. Motivated buyers and sellers come together in a competitive bidding environment that allows a property's true market value to emerge.
Because lenders are eager to sell foreclosed homes quickly to avoid the high carrying costs of bad debt, buyers can typically purchase foreclosed homes below their market value at auctions.
There are significant benefits to using the Internet to purchase property, as one can shop for real estate around the world, pick a suitable property, and bid online from the comfort of one's home.
Traditional real estate auctions for government property or bank foreclosures occur on the steps of the home at a specified time with the potential buyers present at the property to bid, or at the local town hall. Potential buyers usually have the opportunity to inspect the property before bidding and are present at the property during auction so no unforeseen glitches in the process can occur. Traditional auctions are somewhat of a gamble since the buyer never knows how high the price might climb in the midst of competitive bidding.