So much has changed since the COVID-19 pandemic hit the world and drastically changed everything – from businesses to lifestyles.

The real estate market is no exception and also had its share of disruptions that rocked the industry, no matter where they are in the world.

For example, property auctions have become a very popular way of buying and selling properties and with such short notice, were forced to adapt to the new normal of social distancing and virtual interactions.

But the question remains, are property auctions still relevant after the global pandemic?

What were and are the problems and challenges facing homebuyers and investors in the current market now that health restrictions and lockdowns are slowly reverting back to where it was two to three years ago?

Social distancing measures and lockdowns have made in-person viewings and auctions more challenging, while the uncertainty looming around the economy has made people more cautious about their investment choices and decisions.

Without a doubt, the pandemic has stirred everything in the world, causing a dramatic and significant disruption to the property market, making it more difficult for buyers and investors to navigate the changing market environment.

As a result, many buyers and investors found it more difficult and challenging to find properties suited to their needs or find the right financing institution to support their dreams.

Traditional methods of buying and selling properties are no longer enough, and homebuyers and investors need new and innovative solutions to help them navigate the current market.

Moreover, the pandemic has made home purchasing and property investing more challenging than ever before.

In the absence of these innovative and new alternatives, people are more likely to miss out on opportunities, burn money, or end up settling with properties they don’t need.

Online property auctions

A major solution brought about by the pandemic was embracing new technologies and innovative approaches to property auctions – enter, the online auction.

Online auctions, for example, became increasingly popular which allowed buyers and investors to bid on properties from the comfort of their own homes and eliminated the need for in-person viewings and auctions, opening up the market to a wider range of buyers and investors.

Despite the challenges, online property auctions offer many benefits that cannot be ignored such as;

Wider audience

Online auctions allow for a larger pool of potential buyers, as people from all over the country can participate.

This increases the chances of receiving competitive bids and achieving a higher sale price.

More flexibility

Such a process offers more flexibility to buyers and sellers, as they can participate from the comfort of their own home or office.

This convenience can save time and money, as well as reduce stress.

While online property auctions have their pros and cons, they offer an attractive alternative to the traditional method of buying and selling property.

Pros

Convenience

One of the biggest advantages of online property auctions is that they are incredibly convenient for both buyers and sellers.

Buyers can participate in auctions from the comfort of their own homes, while sellers can list their properties and manage the auction process from anywhere in the world.

Accessibility

Online property auctions provide more access to potential buyers, as people from all over the country (or even the world) can participate.

This increases the chances of receiving competitive bids and achieving a higher sale price.

Transparency

Ideally, online auctions can be more transparent than traditional in-person auctions, as the bidding process is recorded and documented in real-time.

This reduces the risk of fraudulent bidding or other forms of unethical behaviour.

Cost-Effective

Such auctions can be more cost-effective for sellers, as they eliminate the need for expensive in-person auctions, which can require renting a venue and paying for staff and other associated costs.

Cons

Technical issues

One of the major concerns with online auctions is the risk of technical glitches or internet connectivity issues, which can lead to frustration and lost opportunities for both buyers and sellers.

Lack of personal touch

Online auctions lack the personal touch that in-person auctions offer, and can make it difficult for buyers to get a feel for the property and its surroundings.

Reduced competition

While online auctions can attract a larger pool of potential buyers, there is a risk that fewer of those buyers will be serious bidders.

This can lead to reduced competition and lower sale prices.

How can online property auctions be useful after the pandemic?

Even after the pandemic subsides, online property auctions are likely to remain a useful and popular option for buyers and sellers.

The convenience, accessibility, and cost-effectiveness of online auctions make them a highly attractive alternative to traditional in-person auctions.

Furthermore, as technology continues to improve, the risk of technical glitches and other issues is likely to decrease, making online auctions an even more reliable and convenient option for those looking to buy or sell property.

Conclusion

Buyers and sellers should carefully consider their options and make informed decisions based on their individual needs and circumstances.

With the right preparation and attention to detail, online property auctions can be a successful and stress-free way to transact in the Australian real estate market.