With so many properties competing with each other on the market we need to look for creative ways to get our Sellers properties sold in the most efficient way.
We have had a number of properties in our area use Real Estate Auctions. I have actually bid on some of these properties for my Buyer's. Some sold for more than or very close to the last price they had them at on the MLS before putting them up for auction.
What do you think of Realtors engaging their Sellers in the use of Real Estate Auction Companies to get Listings Sold? What do you think are the pitfalls and/or benefits? Any experiences?
Pam Jank
I have thought about doing this myself actually but have yet to put an action into play. I look forward to seeing what others have to post about this.
One benefit is that the seller knows the date the property will sell (if it is an auction without reserve).
When banks put REOs up for auction, they usually have an undisclosed minimum that they will accept. As a subcontract auctioneer, I held 2 auctions last month for bank owned properties and only one bidder showed up for each house. Neither sold at auction and the bank has relisted them through an agent in the MLS.
We have had a rush of auctions in our area, it seems that the ones that attract the attention are the absolute auctions (deep bargain hunters). So if your not able to sell absolute, it probably not that good of an idea.
Have a Great Day
I have been involved in 2 to 3 real estate auctions. Once it was my idea when we were dispong of a home on a large tract of splittable property for an estate and another on behalf of an autioneers request. they were both when the market was strong. Neither action brought any where near the property's real value. the estate went ahead for timing reasons and the other didn't happen and sold through conventional methods. i haven't been a huge proponent under normal circumstances but in this market I don't know
Not sure if it is the answer, but there seems to be some talk about it. In the May, 2008 REBAC magazine, there are 10 reasons why they should be considered.
I have not seen them to be very successful here or you would see more of them. You can get something very similiar at the Sheriffs auction each week.
I think an auction is very good at attracting attention to a property if done right, but I like the idea of incorporating online bidding because there is less cost involved and you don't need to get all the bidders in one place at a certain time.