The Digital Sale

The rise of digital sales in real estate occurred through necessity during the pandemic, as traditional business methods were disrupted.

Suddenly, having a digital process for buying, selling, making offers and exchanging contracts on properties nationwide became a critical and defining aspect of the national real estate sales process.

Post-pandemic, the shift to digital has endured.

So, what is the digital sale and how does it work? The digital sale has revolutionised the selling experience for buyers, vendors and agents. It offers a clear set of rules of engagement for all methods of sale across a single platform. Buyers know exactly what steps they need to take to purchase a property. Vendors are kept well-informed throughout the process. And agents have complete control over the chosen method of sale, be it an offer and acceptance, a timed auction or a timed sale. This streamlined approach ensures a smoother and more transparent experience for everyone involved.

Auctioneer and ex-real estate agent turned prop-tech specialist from Realtair, Jake Mackenzie , says, 'Agents can either have a transparent environment that is time bound in a timed sale, where buyers can fight it out over a multi-offer situation but know exactly where that current or highest offer is, or have it private to you as an agent in a private treaty scenario. Being able to convert between them is incredibly powerful using the platform.'?

Unlike a portal like realestate.com.au, which is essentially a display platform, Sell by Realtair is a buying platform. It's where buyers go to bid, register, purchase and exchange contracts. Buyers can access a property listing on the platform through a QR code on the signboard or brochure or via a URL link provided by the agent. Buyers can do much more than just view property details, photos and videos or check out the contract and additional information. They can actively follow the listing to stay updated on its status, make an offer or register to bid. The platform isn't just for browsing; it's designed for buyers to commit to a property. They can make a formal offer, which can be put on a contract, or register and participate in timed or live hybrid auctions.

A buyer can get angry at an agent when they say there's another offer on the property, and they don't quite believe them. But when a buyer receives a notification that a bidder has gone up another $20,000, that's completely different.

The platform also has an agent's area where agents can choose the method of sale and manage it, even changing it to another method later if they wish. Despite the platform's positives, many agents are concerned that digital sales will replace them. However, nothing could be further from the truth. Jake says, 'The agent has more control than ever with the digital sale. No longer are they looking for offers or receiving offers via text message, phone call or email. The offers come through the QR code or the link. Straight away, the agent's actually providing a very clear set of instructions or pathway for a buyer to purchase a property. They have full control over who makes the offer or who they approve to enter and bid in their auctions. They can see all the offers and interests on one screen. They can vet who can be in that sale and who is not in a position to purchase the property.'

No one can get angry at a system. A buyer can get angry at an agent when they say there's another offer on the property, and they don't quite believe them. But when a buyer receives a notification that a bidder has gone up another $20,000, that's completely different. The world has gone digital, and consumers now expect the same convenience in real estate. Notifications, submitting offers and buying properties online through digital systems are the new norm. As an agent, you can set up automatic notifications to inform buyers when higher offers have been received. You can even go to bed and wake up to see increased offers from overnight activity!

Jake says, 'You maintain full control over this process, so there's no need to worry about random offers. You set the guidelines and parameters for your sale. You'll stay informed, and with just a click, you can update your vendor, allowing them to see exactly where their sale stands.'

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The timed auction

A timed auction mirrors a traditional auction in terms of legislation and its creation of an unconditional contract, but the entire process is conducted online. While there's no auctioneer standing before a crowd – everything happens online – a licensed auctioneer still oversees the auction. Jake says, 'Although you might be legally able to oversee things as a licensed auctioneer, you've got enough to do as an agent. Give that job to a licensed and practised auctioneer on timed auctions.'

The auction features a start date and time, an end date and time and minimum bid increments that can be adjusted throughout the sale. A reserve price is set before the auction begins, and all buyers know exactly what they need to do. As bids are placed, buyers are kept well-informed of their standing. Vendors can watch the process unfold while agents and auctioneers maintain complete control over the timed auction. There's total transparency for all parties and the outcome is an unconditional auction contract at the end.

You've got the ability and the time to let that sale breathe

Jake says, 'One thing to keep in mind with a timed auction is that it's still the same regarding the legislation as a normal live auction, the reserve price being one of those things. If you are running a timed auction over the course of two, three or four weeks, you need a reserve price before that auction is open. Some agents think it's before it's closed, but legally, it must be before the auction is open. The benefit of having a timed auction is that as the bids and the offers come in, you've got the ability and the time to let that sale breathe. It lets you have the conversations you need to with the buyers and the vendor, get them to that point, amend the reserve price and achieve a great sale for your clients.'

The digital sale also eliminates the hurdles agents deal with in obtaining the deposit. A timed auction can occur any day or time of the week, and the deposit goes through the platform immediately and securely. The same is true for any type of sale via Realtair's Sell platform. No more bank cheques and buyers having to increase their daily limit, etc.

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The digital sale as a listing stream

So many agents celebrate the sale but neglect this data, missing out on a phenomenal listing stream of potential buyers and future sellers.

When we sold Robyn’s mother’s place via a timed auction on the Sell platform, we had 126 bids on the property. We all assumed it would sell for $950–980k, but it ended up selling for $1.211 million using the digital sale, which was incredible. The property had attracted 75 followers over and above the registered bidders. These people were just observing to see how the sale panned out. With all the important data recorded – name, email address and mobile number, those followers became new listing streams for the agent handling the sale. These are all people who walked past the signboard and scanned the QR code. So many agents celebrate the sale but neglect this data, missing out on a phenomenal listing stream of potential buyers and future sellers.

Jake says, 'Great agents are putting a QR code on all their marketing collateral. That way, when buyers, followers or neighbours walk past, they can scan the code to get more information. They may not want to call the agent to find out what's going on with the property, but they're happy to follow the proceedings. By hitting follow, they provide all the information you need to give them a call. Best of all, you will have a solid reason to call, such as letting them know the outcome of the sale. Using the platform in this way is a great way to capture data of both buyers for this property and future sellers.'

The digital sale and compliance

With a digital platform, every action is meticulously logged. As soon as an offer is received, it is date-stamped and time-stamped. Another date and time stamp are added when the offer is forwarded to the vendor. This creates a comprehensive, traceable record of all activities. That way, when the Office of Fair Trading or other authorities require a complete record, retrieving it is straightforward. A simple click allows for the download of the entire history, including the number of followers, registered bidders and the bid progression on auction day. All the necessary information is consolidated in one easily accessible place, ensuring full compliance with regulatory requirements.

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Transparency during the negotiation process

Transparency is one of the highlights of the digital sale, both for the purchasing community and the agent. Jake says, 'Buyers love digital. They love notifications, and they expect to be able to be informed instantly as other offers are made. There have been countless examples of buyers who haven't purchased the property calling the agent and thanking them for the transparency in the communication throughout the sale. That's all been done by the system with the agent overseeing it. Having notifications when offers come out overnight is amazing. That way, when you wake up in the morning, you know all the buyers have been informed. All buyers know exactly where the current offer stands and what they must do to purchase the property. Having the power of those notifications set in the system and going out, either automatically or when you'd like them to, really increases the transparency in the relationship between you and your buyers.'

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Determining buyer engagement pre-launch

To determine qualified buyer engagement before a property goes live to an international audience, simply upload everything into the carousel – all your photos, the video, the contract, the building report, the pest report, the strata report, absolutely everything that a buyer needs access to in order to engage with the property, make an offer or register a bid, depending on the sale type. You can also send your targeted bulk email or text messages to all the buyers who have registered within a particular range this way. The message might read: 'Hi John, I've just uploaded a great property to our purchasing site that has not yet been publicly launched. It's exactly within your range, and it's in the area you are looking for. Click on the link and let me know what you think, and feel free to register and make an offer or a bid.' It's a fantastic way to take a property to your purchasing community before it's available on the portals. So, what you're doing here is aiming the marketing at a targeted group of qualified buyers and giving them VIP access to inspect the property digitally and get in first with an offer or a bid if they want to buy it.

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A multi-method approach to selling

Having a multi-method approach to sales can be incredibly advantageous. Often, a sale might begin as a private treaty but quickly heat up, putting you in a position to sell it unconditionally rather than going through solicitors or conveyancers. To enable this switch from a private treaty to a timed auction, simply ensure the Agency Agreement includes the option for an auction, allowing you to seamlessly switch to a timed auction.

There's no need to wait for a Saturday auction; you can sell the property when buyers are ready.

Imagine you've got three or four buyers eager to purchase and not requiring any cooling-off period. In that case, you can convert the private treaty listing to a timed auction. By using the platform's notification system, you can inform buyers of this transition, providing them complete visibility of competing bids. This allows buyers to make unconditional offers and gives them the best chance to secure the property while creating a sense of urgency through competition. Best of all, timed auctions can be run over the course of an afternoon or even a few hours. There's no need to wait for a Saturday auction; you can sell the property when buyers are ready.?

Jake says, 'I was the auctioneer on a property listing that began as a traditional auction, was passed in at the live onsite auction and was then converted to a timed auction. The buyers at the auction were a little bit hesitant. They wanted social proof and waited for another bidder to start. We ended up placing a vendor bid on the property and then declaring the property on the market. But the buyers were still hesitant to start. So, we passed the property in. But a couple of hours later, the agent called me and said he had received multiple offers from the same buyers on this property. But they didn't really believe what was going on behind the scenes. To increase the transparency and provide a level of trust and surety for the buyers, we converted it to a timed auction. We kicked things off with the current offer that a buyer had made by getting the buyer to submit that bid. The property ended up selling for an amount that exceeded the vendor's expectations. By having that social proof and providing a platform and a little bit more time for that sale to breathe, the agent was able to use the tools to take control. In the end, everyone was happy.'

Why buyers are embracing the timed auction

I've seen properties that languished on the market for months turn around dramatically when converted to a timed auction or timed sale.?

I've noticed that people who traditionally avoided auctions and preferred private treaty sales have increasingly embraced the digital timed auction. The question is, why? The timed auction offers the best of both worlds: it combines the benefits of a private treaty listing with the advantages of an auction. Agents and vendors appreciate auctions because they are unconditional, involving qualified buyers and a set contract period. On the other hand, private treaties offer flexibility with the listing timeframe. The timed auction strikes a perfect balance. It allows us to bring in buyers who might shy away from an auction if it was marketed that way from the start. This method provides the security of an unconditional sale while giving the property the time it needs to attract interested buyers.

Jake says, 'If the market is hot and buyers are ready, we can run a timed auction for just a week. If more time is needed to gather a pool of committed buyers, we can extend it to two, three or even four weeks. This flexibility is why traditional private treaty agents have found the timed auction so appealing.'

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Creating a sense of urgency

Before digital sales, owners would typically either pull their property off the market if it didn't sell or switch agents. When a property is listed with just a price guide and no deadline, buyers have little incentive to act quickly. However, introducing a deadline and showing that other buyers are interested can drive urgency. Buyers must decide whether they're in or out on a particular property.

Jake says, 'I've seen properties that languished on the market for months turn around dramatically when converted to a timed auction or timed sale. When the price aligns with market feedback and value, these properties often achieve much higher prices. This is because a timed auction brings a pool of buyers together and encourages them to make offers or bids with a clear deadline for when the property will be sold. The power of a deadline has always been a crucial element of auction campaigns. We can maintain that urgency and decisiveness without a traditional auction setup with digital sales, whether through timed sales or timed auctions. This approach benefits both buyers and vendors, ensuring timely and competitive transactions.'

Digital sales are beneficial not only for agents but also highly appreciated by buyers. I've seen numerous examples of buyers choosing specific agencies because they appreciate the transparency and flexibility provided by the digital platform. This transparency builds trust and enhances the overall experience for everyone involved. By integrating these digital methods, you can offer a modern, efficient and transparent way for buyers to navigate the real estate market. If you don’t add digital sales to your toolkit, you risk being left behind.

We haven't created anything new.

Jake says, 'The best thing about having a platform is that it's almost like having new listing and sale methods. But really, we haven't created anything new. Private treaty, timed sales and timed auctions are just digital versions of what's existed for many years in real estate, but refreshed and modernised.'?

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