Learn About Online Auctions in Commercial Real Estate Marketing
Not all platforms are equal regarding online auctions in commercial estate marketing. Two critical factors must be considered: soft close or dynamic endings and high sell-through rates.
Soft Close or Dynamic Ending
Online auctions’ soft close or dynamic ending feature revolutionizes the bidding process. With commercial real estate software, the clock is extended when a bid is placed in the final minutes of the bid increment, allowing participants to continue bidding. This system ensures transparency as all bids are fully disclosed. Moreover, it gives bidders a fair chance to place their bids before the auction concludes. The highest bid submitted before the time stops emerges as the winner. By incorporating this feature, auction platforms create an atmosphere of trust and competitiveness, benefiting buyers and sellers.
High Sell-Through Rate
The sell-through rate of an auction platform serves as a vital indicator of its effectiveness, representing the probability of an item being successfully sold. For instance, if a commercial property marketing platform boasts an 80% sell-through rate, the asset listed has an 80% chance of finding a buyer. Auction specialists rely on sell-through rates to assess an item's value and determine its suitability for auction. A successful auction event requires precise pricing expectations based on qualitative analysis, market dynamics, and demand assessment. Therefore, choosing a platform with a consistently high sell-through rate is crucial for maximizing the chances of a successful sale.
Things to Avoid in an Online CRE Auction Platform
When exploring online auction platforms, it is essential to understand how they collaborate with brokers. Some platforms may disregard the role of third-party brokers in their sale assignments, marginalizing their involvement and minimizing their fees. These platforms rely on internal sales advisors to manage the entire sale process or promote a do-it-yourself (DIY) approach, encouraging sellers to handle their sales. Unfortunately, this often leads to brokers receiving minimal compensation or being entirely excluded from the sale process. Consequently, many brokers hesitate to engage with such auction sites, fearing their efforts will go unrewarded.
The Ideal Platform for Brokers
To ensure a successful auction process, choosing an online platform that values and collaborates effectively with brokers is crucial. The ideal platform recognizes the expertise and local networks that brokers bring. Brokers should play a critical role in the sale process, utilizing their industry knowledge to drive successful outcomes. Rather than competing with brokers, the platform should act as a valuable resource, providing brokers with the necessary technology and support to conduct online auctions. By partnering with brokers and offering comprehensive valuation assistance, a platform can establish itself as a trusted facilitator of successful online auctions.
When evaluating online auction platforms in commercial real estate marketing, it is important to consider two key factors: a soft close or dynamic ending feature and a high sell-through rate. These features enhance transparency, fairness, and the likelihood of a successful sale. Additionally, it is crucial to choose a platform that collaborates effectively with brokers, recognizing their expertise and providing them with the necessary resources to drive successful auction events. Considering these components, you can select the right online auction platform for your needs, ensuring a seamless and profitable auction experience.
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