The platform will provide homebuyers the option to complete entire home purchases and sale transactions through its platform’s “buy now” button, and allow clients to purchase and sell homes through online auction.
Co-founder Todd Sullivan, an Inland Northwest homebuilder, says the platform’s main function at launch will be combining the Multiple Listing Service (MLS) found on other real estate sites with these buy now and auction services.
While Auctionable’s services will be free of charge to users, the company plans to generate revenue through partnerships with real estate-related companies and a future online home store, according to Sullivan.
Once a buyer hits “buy now”, a 48-hour hold will be placed on the listing, with agents being immediately contacted to begin the creation of purchase and sale documents.
The online auction option will enable listing agents to control the reserve price, duration of auction and buy now price, if applicable.
“When it goes through the auction, everything is absolutely transparent. You know who’s bidding. You know the price of the houses,” Sullivan said, adding, “You’ll get an email immediately saying you’ve been outbid. Then, you can go back in and put another bid in or click the buy-now button.”
With millennials taking over as the leading homebuying group, and largely accepting of technology, the platform seems to have potential for its launch. That is without mentioning the loads of people moving to Boise, and the regions accelerating home prices.
If the area continues to attract California transplants and others to its inlet location, an auction option could be the best way for homeowners to sell their property and find the best value.
“I think the industry as a whole—the buyers and sellers—are both wanting more transparency. They want to know more. Millennials … want answers and will research and go find answers,” said Abbey Parsons, broker at Coldwell Banker Tomlinson of the Spokane Valley.
Parsons also noted that agents who remain educated about new technologies also serve their clients better. In fact, the National Association of Realtors reported that 97% of all buyers use web tools in their search process.
In addition to the buy now and auction tools, Auctionable also plans to provide an online management tool for agents and home buyers. The service is expected to inclue scheduling, document storing and contact information for services such as movers, cleaners and utilities. It will also provide scheduling, track listings and communication for agents.
While Auctionable currently only has three employees, Sullivan says it hopes to expand to over 20 employees by the end of the year. He also said the company plans to raise $3 million in funding, in addition to a recent undisclosed seed round, and will use the capital to expand to Seattle, Portland and California metro areas.