Real Estate Auctions Keep Growing!
Back in 2005, the words from The National Auctioneers Association stated, “Residential Real Estate Auctions Going Through The Roof”. The optimistic report was based on the following sales:
2002, $10.2 billion, 2003, 11.5 billion, 2004, 11.5 billion, 2005, 15.0 billion and the projected $30.0 billion for 2010.
Due to the success of eBay, today’s generation is not viewing auctions as a last resort but as a dynamic, viable, alternative method of marketing. Realtors® who have had the opportunity to learn how auctions work are no longer treating auctioneers as the “enemy” but as an additional source for marketing real estate. Properties that are in big demand or are unique and difficult to value become prime candidates for auctioning.
In 2006, the National Association of Realtors® appointed the president of the National Association of Auctioneers to it’s board of Directors. The relationship between the two giants of marketing are working to share research, education and information.
The similarities between the two methods of marketing are almost identical. The main difference is that all the “subject to” clauses in the typical Realtor® agreement (i.e. due diligence) are exercised before making a bid with the auction method. Where the Realtor® writes up an avoidable contract the auctioneer says SOLD! and a binding contract is instantly formed.
Once Realtors®, home sellers & buyers understand the differences in the two methods of marketing it becomes apparent that having the choice of either is very beneficial.
We have taken these benefits one-step further by offering both methods of marketing simultaneously. This dynamic method exposes the home in the regular MLS system and if not under agreement by an agreed upon specified, date put up for auction. Using both methods are a “win-win” for everyone.
The auction is typically with RESERVE, which simply means the seller retains the right to accept or not accept the highest bid. The concept that the home can be “given away” is completely false. |