- February 19, 2025
- Reading time about 6 minutes
The way real estate transactions happen in the US is shifting, and if you’re in the industry, you’ve likely noticed that online auctions in real estate are no longer a niche trend. They’re becoming a go-to strategy for realtors looking to sell properties faster, reach more buyers, and eliminate the back-and-forth negotiations that can drag deals out for weeks or even months.
But how many actual realtors are employing online real estate auctions? And what’s driving this trend? Let’s dissect it all.
The Rise of Online Real Estate Auctions
Real estate online auctions are not new per se, but their acceptance among traditional realtors has picked up in recent years. The National Association of Realtors (NAR) approximates that more than 30% of all homes sold in the US are touched by auctions in one form or another. Moreover, the market for real estate auctions has expanded beyond $65 billion and is now one of the fastest-growing sectors in property sales
Traditionally, real estate auctions were for distressed property, foreclosures, and properties owned by banks. But not anymore. Today, more luxury homes, commercial land, and even raw land are being auctioned online, sometimes at market or even above-market values.
The pandemic was major in changing how real estate is purchased and sold. Virtual house tours, digital contracts, and online real estate auction sites were the new normal, and when realtors caught wind of just how efficient and transparent the process could be, they began employing these tools even more.
Fast forward to 2025, and we’re looking at a landscape where online real estate auctions aren’t just an alternative—they’re becoming a fundamental part of the selling strategy.
Why Are Realtors Choosing Online Auctions?
If you’re wondering why so many realtors are shifting toward auctions, here are the key reasons:
1. Faster Sales, No Guesswork
Traditional listings linger on the market for weeks (months), resulting in price cuts and disappointed sellers. Auctions have a designated date for bidding, which generates urgency and shortens the time on the market. When the auction closes, the sale is complete—no lengthy negotiations.
2. True Market Value
Pricing property is never easy. Charge too much, and people won’t bid. The charge too little, and the owner loses. With online auctions, competitive bidding puts properties up for sale at their true market value—often more than anticipated if demand is high.
3. Access to a Larger Buyer Pool
With an online real estate auction site, a house isn’t confined to the local neighborhood. Investors and interested buyers around the country (or even the world) can bid, heightening competition and ultimately leading to a higher price
4. Less Drama, More Transparency
Auctions are liked by buyers because they cut out the usual “behind-closed-doors” haggling. Everything is transparent and visible in real-time, taking the uncertainty out of the deal and making it easier to buy.
5. Sellers Adore the Certainty
For most sellers, the greatest advantage of an auction is having a definite idea of when their property will sell. No, waiting for multiple offers, no fear of buyers pulling out—it’s a smooth process with a definite result.
6. It’s Just Where the Market is Going
With 96% of realtors, as reported by NAR, using their cell phones every day for business and 69% already possessing an IDX website for realtors to post listings, it’s not hard to see why implementing real estate auction software is the next natural progression. Buyers demand streamlined, technology-based experiences, and auctions are right in line with that trend.
How Many Realtors Are Actually Using Online Auctions?
Let’s dig into the stats. It’s difficult to precisely tally how many realtors actually employ online real estate auction websites, but here’s what we have:
· More than 500,000 residential homes are sold through auctions nationwide each year, according to Auction.com.
· As of 2023, more than 20% of high-end properties (more than $1 million) were sold through auctions instead of regular listings.
· Commercial real estate auctions are growing 30% year-to-year, signaling a high uptake rate among office space, retail, and industrial property realtors.
· The US’ top real estate auction sites have reported a 60% rise in realtor onboarding over the past three years.
While old-school MLS listings remain king, these figures make one point clear: Online auctions in real estate are no longer a minor player—they’re a big deal.
Challenges & Misconceptions About Online Auctions
Naturally, no method of selling is ideal. Even with the obvious benefits, some sellers and realtors resist auctions. Here’s why—and why these misconceptions are slowly disappearing:
1. “Aren’t Auctions Only for Distressed Properties?”
This was once true, but no longer. Auctions are now being employed to market everything from middle-market houses to multimillion-dollar mansions. The trick is marketing it the proper way.
2. “Will I Lose My Commission?”
Most realtors fear that auctions exclude them from the transaction. In fact, online auctions still include agents, and commissions are arranged in much the same way as in regular sales. Indeed, some agents earn more commissions since auctioned properties sell quickly and usually for more money.
3. “Tech Barriers”
Some agents worry that they will not be able to grasp the technology involved in real estate auction software. But today’s platforms are made easy to use, with step-by-step instructions and customer service to guide both clients and agents through the process.
The Future of Online Auctions in Real Estate
With the quick uptake of real estate auction software, increasing numbers of realtors are beginning to look at online auctions as a necessary component of their sales repertoire. Rather than substituting for traditional listings, auctions are becoming a value-added weapon that enables agents to present sellers with a quicker, more aggressive method of closing transactions.
Think of it this way—just a decade ago, virtual home tours weren’t common. Now, they’re almost expected. Online auctions in real estate are following a similar trajectory. Those who adopt early will have a clear advantage, while those who resist may find themselves struggling to compete.
The bottom line? If you haven’t explored online auctions in real estate yet, now’s the time to start.
BidHom: The Real Estate Auction Platform Built for Realtors
If you’re ready to integrate real estate auction software into your business, BidHom is here to help. Our platform makes it easy to:
· List and market properties to a nationwide buyer base
· Manage bids seamlessly with a user-friendly interface
· Close deals faster while maximizing your sellers’ profits
· Keep full control over your commissions and earnings
With integrated IDX website for realtors, high-end marketing features, and streamlined auction process, BidHom has all you need to be on top of the real estate market.
Curious to learn more? Book a demo today and elevate your real estate business to the next level.
