Live in-person auctions vs. online auctions vs. hybrid auctions — what are the differences? There are many, and it’s important to understand the similarities and differences of in-person, online, and hybrid auctions. Read on for the factors and elements associated with these common auction styles, with expert input from a trusted Land Specialist.
Editor’s Note: This is not financial, investment, legal, or real estate advice. Consult with a financial planner, investment specialist, real estate lawyer, and real estate professional before buying or selling land at auction.
What Is an In-Person Live Auction?
A live in-person auction is when land is sold and bought at a live event. An auction house manages the sale, advertises and markets the property, and facilitates the entire process. The actual sale is completed at a physical auction venue.
Brent Reneau, an Illinois Land Specialist with Whitetail Properties and Ranch & Farm Auctions, says that having a live in-person sale also provides more room for confidence with older generations who aren’t as skilled with digital platforms.
“I think the live in-person auction gives people a chance to do an old-school auction,” Reneau said. “You can show up, see the neighbors, have a cup of coffee, eat some food, and more. Everyone is interested in who buys the land. So, if the winning bid is on the floor that day, they get to see who bought that property. They can go back to the coffee shop or restaurant and talk about it.”
What is a Live Online Auction?
A live online auction is the process of selling (or buying) land at an online auction venue. It’s only sold in this manner and doesn’t allow for bidding over the phone or in person.
According to Reneau, with online auctions, you’re strictly bidding live online. Digital-based bidding is the only available option. He says these are much less common than live-in person and hybrid auctions, but they are available for the land sellers who want it.
While Ranch & Farm Auctions prefers the hybrid model, which tends to be more effective, it doesn’t do as many online-only sales. That said, some auction houses do now. They do so because it costs less for the seller, doesn’t require an auction venue, runs on fewer man hours and resources, and offers convenience to all parties involved. Again, it can, but doesn’t always, lead to lower sale prices, though.
What Is the Hybrid Auction Format?
The hybrid auction format is a combination of multiple bidding types in the same auction. Essentially, a willing and registered buyer can bid online, over the phone, or in person at the live auction.
“It's appealing to a buyer, because they can sit from the comfort of their home, their treestand, or wherever, and still bid online,” Reneau said. “I prefer a live in-person auction with simultaneous broadcast on the internet so you can get that hybrid model.”
Reneau says that much of the older generation has more confidence in live, in-person auctions. They prefer to be face-to-face with those running the auction. That’s perfectly OK. Most people prefer that method, which is why it’s still the most-used option.
However, the hybrid auction method allows those who like the other side of that coin to use that route instead. Everyone gets what they want, and everyone has the same equal chance to win at auction.
Additionally, for those who want to attend the live auction, but simply can’t, phone- and web-based bidding are excellent choices.
“We even do a lot of phone bids, too,” Reneau said. “That’s another one of those options that gives any buyer the possibility to bid — even if they can't make it to the live auction. They can make a bid online. They can call an auction specialist, call the director of auctions, call the office, etc.
By making all three methods available, people have every opportunity to bid on land they’re interested in. That’s the beauty of a hybrid auction.
“Offering all three gives you the best of every world,” Reneau said. “You can keep that confidence and trust in the local buyers and sellers that the sale is square.”
Similarities of Live In-Person and Online Auctions
The foundations of a live in-person and online auction are the same. These formats create competitive yet fair environments for buyers to bid on available properties. An auctioneer or facilitator manages the bidding pool.
The bidding structures are the same as well. Incremental increases are used to raise the bidding until a final bid is given by the highest bidder.
Likewise, the overall goals of these two different auction types are the same. Property details can be viewed the same, which are online. View photos, videos, and written descriptions there. See the property in person, too.
Other similarities include reserve prices, property disclosures, terms and conditions, and more. These methods share a goal of receiving the highest possible price for the seller and fair market process for buyers.
Differences of Live In-Person and Online Auctions
The differences of live in-person and online auctions are notable. First, online-only auctions cost less to sellers. But they also usually bring in fewer buyers than hybrid auctions.
Another notable difference is potential or extended bidding times. This sometimes occurs with online-only bidding but rarely does in live settings.
Naturally, for those interesting in bidding, online bidding offers increased convenience, reduces travel costs, and makes it possible to attend auctions they otherwise might not be able to participate in.
Unfortunately, online auctions don’t offer the atmosphere, or as much competition in bidding, as the in-person setting.
What Sets Ranch & Farm Auctions Apart from Other Auction Houses?
Some who haven’t already experienced what Ranch & Farm Auctions offers, might ask, “what is it about Ranch & Farm Auctions that sets it apart from other auction companies?” Reneau answers that question.
“Ranch & Farm Auctions is a division of Whitetail Properties. I think the biggest thing that I tell people is they are still getting the same marketing power as Whitetail Properties, but with the Ranch & Farm Auctions brand,” Reneau said. “You're getting that national advertising.
“We have many buyers who follow our markets,” Reneau continued. “Maybe they don't live in that particular area or region. But they're still going to be a buyer force, because they follow our auctions. They trust in our business and our opportunities. They trust our Land Specialists and the descriptions of the farms that they're getting.”
According to Reneau, first and foremost, that is what separates Ranch & Farm Auctions from its national brand competitors. Of course, Ranch & Farm Auctions also offers significant advertising and marketing advantages over local and regional auction houses.
“Our national marketing campaign for a property is exceptional — no matter if it’s Whitetail Properties or Ranch & Farm Auctions,” Reneau said. “The next thing? Along with the national platform, you not only have the national presence but also have a local Land Specialist to guide that brand.”
After all, real estate is an incredibly localized thing. It’s crucial to have that local expert involved. That’s why Ranch & Farm Auctions succeeds with its business model and format.
“We can put that property out there,” Reneau said. “Our resources and network ensure that people are familiar with us. A lot of smaller auction companies do a good job with that. I'll tip my hat to them. But I feel like having that nationwide presence across the United States matters greatly, too.”
Ultimately, by having this network, no matter where you're at in the country, the Ranch & Farm Auctions and Whitetail Properties branding sticks out and resonates with buyers and sellers alike.
Contact Ranch & Farm Auctions for Your Land Auction Needs
For landowners looking to sell at auction, contact Ranch & Farm Auctions. We can answer questions and help with your auctioneering needs. For buyers hoping to purchase land, check out some of the upcoming Ranch & Farm Auctions near you.