Posted by Jeff on 23 May 2008 | 0 Comments

Tags: auctions

Real Estate auctions have normally been associated with distressed properties – foreclosures, bankruptcies and property owners in distress – and as a selling method of last resort. There is more to this story.

According to the National Auctioneers Association (NAA), the live auction industry grew by 5.3% in 2007; with residential sales between 2003 and 2007 growing at 46.6%. Auctions are fast. They’re convenient. And they minimize the holding costs that people are incurring today with homes being on the market an average of 8 months.

Auctions offer homeowners a number of advantages over conventional listings. In addition to the overall speed of the process, an auction allows sellers to time the sale. Also, with an auction, everyone thinks they can get a deal. A real estate auction tells you exactly what a property is worth at that particular point in time. When a group of willing buyers get together at a live auction, a competitive spirit kicks in, and some get caught up in the heat of the moment, driving the bid higher. Market value is determined by what a buyer is willing to pay.

The key to a successful real estate auction is marketing. This is where a blended method can prove very effective. The auctioneer (no sale at auction) and realtors (potential buyers identified at auction) work together to get one or more auction properties sold; a win/win for everyone.