If you've ever attended a well run "live" auction, you've seen the competition and bidding frenzy it can create.
Creating a bidding frenzy is a powerful and exciting way to sell real estate in a "live" setting, but doing it online is easier.
How do you create an online bidding frenzy? Here are some strategies.
Price - Opening bid must be perceived as a great value.
Limit Access - By limiting access to the property through scheduled open houses, it forces all buyers to be there at the same time, creating competition.
Limit Time - Making the property available for only a limited time creates urgency for the buyer to act.
Easy Offers - Allow interested buyers and their agents to bid online from the comfort of their home or office.
Open Competition - Allow everyone to see the current high bid. It's easier for a buyer to justify an increase of their offer if it's only $500 or $1000 more than the current offer.
These strategies combined with good marketing are all it takes to succeed with online auctions.
I'll discuss marketing strategies next week.