Over a sunny afternoon in Fl, an energetic crowd collects on the lawn of a top quality luxury estate. A loud and eager badinage, persiflage between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest wager and the bidders act in response. Suddenly the bidders develop silent. The high prospective buyer holds his breath pending winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair caution, last chance” the auctioneer pauses, “SOLD! ” And in below 10 minutes another multimillion dollar house has changed owners. meir segal
Good real estate auctions just like the one above are happening across North America and the Carribbean. Recently real estate sale have been on the rise, the rise in popularity is partly powered by growing inventories and fading buyer confidence. Real estate that were selling in weeks using traditional methods are now languishing on the industry unable to entice buyers even while seller’s lower prices. Many the real estate boom is finished but savvy buyers and vendors are profiting from real estate auctions.
Real Property Auctions Work in Up or Down Markets.
Irrespective of trends or market periods, real estate auctions offer an open and translucent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to work now.
The auction method removes the “wait and see” attitude which will serve to further depress real estate values. Buyers are concerned about overpaying. Customers gain confidence with their purchases at real property auctions because they can see what others are willing to pay.
When ever market demand is high and inventories low, real estate auctions can deliver prices well above what a willing seller would have accepted in a negotiated private treaty sales. In good selling areas many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the desk. During up markets real estate auctions are the best way to create top market price.
Assessing Your Real-estate for Public sale
Not every property or seller for that subject constitutes a good prospect for auction. First of all sellers must be well prepared to sell now and for the present market value. Likewise a real estate market will not fix problems caused by an economic downturn in their market value of your property, if individual owes more than a willing buyer can pay, be prepared to come to closing with your check book.
Homes that do well in real estate auctions have a higher uniqueness factor. Inquire yourself, “What makes my property different from most others? ” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate property online auctions thrive on uniqueness. In the event your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most of all retailers must be reasonable about setting a minimum bet. A seller must consider the lowest, most current comps and price below that to create the interest and urgency essential for a successful real estate public auction. Once the auction commences and qualified bidders start competing against one another you can watch the selling price increase.
Identify a Qualified Real Real estate Auctioneer
Start by looking at with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the gross annual International Auctioneers Convention where the latest techniques and innovations in the real estate auction industry are presented.
Figure out the company you are interviewing is a full time real estate market firm. Many real house agents are getting market licenses yet have no experience with the market method of marketing. Doing a successful real property auction is nothing like (private treaty) traditional real estate sales. Go with a property auction expert.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the casual rare painting. Offering real estate at market is a complex subject that should just be used by full time experienced real estate auction pros.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to engaging real estate professionals.