Those of you that use property research tools know that these days many “distressed” properties are sold at auction. But did you know that more and more properties that are not in default or bank owned – just a regular ol’ home or condo for sale – are being sold via auction?

Real Estate auctions are not new - they are recorded instances of real estate auctions as early as 500 BC. In Australia, real estate is mostly bought and sold through auction. It is a new concept in the USA, but a growing one. Companies such as Private Auction Properties have taken the real estate auction concept and modified it. Properties are offered via an online platform, escrow has already been opened (meaning all the due diligence documents are directly accessible to buyers and Agents to review), and only pre-qualified buyers can make bids.

Highly motivated buyers and sellers are the key to making it all work. By pre-opening escrow service providers accumulate all the necessary documents available, furnish various services and information in advance of any sale, and prepare the seller and the buyer for the close in advance. Offers are presented and countered online. Real Estate Agents claim properties on the market for months are selling right away via this new auction process.

What do you think? Is this an exciting, simplistic approach that provides all the safeguards and transparency that real estate pros demand, or is it just a fad that will end when the market turns around?