(English) Online Auctions: Future of the Housing Market?
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What does this mean to the future of Realtors and the need for one?
Hi Penny,
Thank you for the great question!
In regards to realtors, the growing popularity of online auctions simply opens up more opportunities for them. This is because many of these online auctions allow for broker participation. However, as far as the need for one goes, most auctions will not require you to have an agent.
While online auctions do make it easier for people to buy and sell homes without a real estate agent, I do believe realtors will be able to find their role within these online marketplaces.
You forgot to mention the “Technology Fees” to buyers, as well as “Buyer Premiums” charged to buyers, and the generally lower commissions to Realtors!! This, along with the randomness of the rules which differ site to site, makes me prefer the traditional list it in the MLS and submit an offer.
I have seen three waves of auction services now and in a specific segment of the national market it will work. As soon as the mortgage insurance companies realize how much auction services leave on the table, the momentum will slow for auctions. It is a good answer for REO servicing companies that don’t have a plan or real estate knowledge.
The transparancy part of the issue I can appreciate. In the distressed property listings, I see it as a result of agents that do not market to the open market, take an offer from their own buyer. The Shorted bank wants market value. They could have done that easily by requiring a property be placed on the open market for X number of days, and then negotiating at the beginning of the offer process to counter. Now we have what is often interference of agency.
My questions is where does the “process” of investigations, due diligencey, inspections and the true fiduciary duties carried out by the agent representing the principal. Forget not this is usually the largest investment/sale of a buyer at this point in time. Electronic signatures are one thing. Turning the sale over to electronic “everything else” I fear is short sighted. The day is coming but I don’t believe it is here yet.