A Real Estate Online Auction brings true market value

In a competitive buying environment, it been proven many times that selling by auction is the best way to achieve true market value for something.

Think about the high-end auction houses like Sotherby's who have been thriving since 1744. They have the auction marketing strategy and process down to a science and are good at it. Whenever an owner of an expensive piece of art wants to sell it, they usually turn to Sotherby's to help them get true market value. It sure beats putting an ad in the paper.

Within the last 10 years, more and more auctions have moved to the Internet. You've probably heard about unique items on Ebay that attracted thousands of bidders and resulted in a very successful sale.

My point is this, the auction method of selling has proven as a very successful way to bring true market value for any item when the marketing is done right. It brings buyers together within a time boundary which creates competition.

Today's real estate market needs this badly and we are seeing more auctions as a result. However, even though the Internet has opened this process to real estate agents, most are slow to adapt. It could be lack of understanding, resistance to change, or maybe a combination of both. It reminds me of time not too long ago when many real estate agents said "Why do I need a website?"

As we all know, change is constant and technology has sped up change. Those who understand and embrace change have a huge advantage on those that don't.

I'll be the first to admit, an online auction is not a good fit for every property. It's not the end-all solution. However, it's a powerful option in the right situations and if you're not familiar with how you can be using them, it's time to start learning.

Real Estate Online Auction - Success Tip

In the past 4 years, I've seen hundreds of successful and unsuccessful online real estate auctions.

One of the things I've noticed with the successful online auctions is that, the listing agent puts together a marketing plan. They plan scheduled open house previews, signs in the yard and surrounding neighborhood, Craigslist, Facebook and other Internet marketing. On higher end homes, direct mail postcards and other print advertising is also used.

One of the great things about an online auction is that it naturally attracts attention. Buyers are anxious to know about them and they stand out. So, it just becomes a matter of figuring out the best ways to let them know about it.

If you're a Realtor and not yet familiar with how you can use online real estate auctions, come join our next Free webinar

Real Estate Internet Auctions - Gets things moving

The real estate market has been slow and sellers are getting tired of waiting for offers and lowering their listing price.

Now is the opportunity to become proactive by using a real estate online auction and get a listing under contract in 30 days or less.

Technology has provided the tool. Join us Thursday for a Free Introduction to using Online Real Estate Auctions

Real Estate Online Auctions - Continue to grow

Real Estate Disposition (REDC) just reported $68.8 Million in sales from their auctions held December 5th & December 6th. $37.8 Million of that was sold through it's "online only" auction site.

This is now the 2nd consecutive week that their "online only" sales exceeded their "live" on site sales. Another strong indication that online auctions are growing quickly.

The great news is, that technology is available today that allows any Realtor to take advantage of this growing trend.

If you're a Realtor and not yet familiar with how online auctions work, make sure you take advantage of our Free webinar - Register Here

Real Estate Online Auctions - Misconceptions

When it comes to online real estate auctions, I'm finding there are still a lot of real estate agents who don't understand them.

Here are some of the most common misconceptions...

1) The seller must accept the highest bid - Not true. The only time that is true is when an auction is done absolute. Almost all online auctions are done with a reserve price or "subject to seller confirmation"

2) Auctions are only for distressed properties - Not true. Luxury homes and brand new homes are regularly being sold through online auctions.

3) People will Bid without visiting the property - Not realistic. Yes, in certain situations when you are auctioning land or something for pennies on the dollar, you could receive bids from someone who hasn't physically viewed the property. Realistically you need to have scheduled open house previews for potential buyers to visit.

4) No way to validate bidders - Not true. Many auction systems have credit card validation processes as well as full "bidder pre-approval" processes. As a listing agent you can require the same requirements you do for presenting a written offer.

Want to learn more? Join our next webinar - Click Here to Register

Real Estate Online Auctions - Growing

It seems almost every week I discover a new online auction site for real estate. This is clearly not a passing trend, but something that is going to continue to grow.

As I think about it, it's easy to understand why. All teens and young adults are very connected to the Internet. As they move into home ownership, it's only natural that they will want to bid online.

Real Estate Internet Auctions are here to stay...

If you're a real estate agent and not yet familiar with how online auctions work, make sure you take advantage of our Free webinar - Register Here

Real Estate Online Auctions for Realtors

REDC had $33.6 Million in sales through it's "online only" auction site this past weekend. Additionally their "live" onsite auctions added another $21 million.

This is a great example of how online auctions are growing and here to stay.

Technology has enabled the Realtor to get involved with online auctions, but most Realtor's don't know it yet.

Currently, in every state except Georgia, New Hampshire & Rhode Island, a licensed real estate agent can conduct an online auction themselves without the help of an auctioneer.

To find out how you can get involved, join our next webinar on Thursday.

Click Here to Register

Real Estate Online Auctions - Puts YOU in control

Technology has provided the tool and real estate agents are taking advantage of it.

The "tool" is an online auction and it has given real estate agents the ability to market and sell their listings quickly through an auction process without involving an auctioneer.

The process puts the agent in control of when the marketing begins, when the open houses will be and when the bidding will end. Some do it in 2-3 weeks while others have taken the process down to 1 week.

Regardless of the methods, the process works and it works well. It's a nice option for your clients when the average days on market is at least 6 months.

If you'd like to learn more about the process and how it works, please join us Thursday at 1 pm CST for a FREE webinar.

Click Here to Register

Hope you can join us!

SOLD in 6 hours - using an online auction

One of the benefits of being a provider of a real estate online auction system is that I get to see different strategies that are used by our customers.

Before last week, the shortest successful online auction was 2 weeks. Not bad when you consider there are properties sitting on the market for months.

However, last week a new standard was set. One of our customers put a property up for auction for only 6 hours. During that time, it received 52 bids and the bidding climbed to $520,000 before it ended.

On Thursday at 1 pm CST, we'll share what they did to make this happen.

Hope you can join us - Click Here to Register

Do online real estate auctions work?

“Do online real estate auctions really work?” is a common question from anyone new to using online auctions to sell real estate.

The answer: Yes, absolutely they work! That's why were seeing a huge shift of auctioneers and real estate agents to adjust their selling strategies and start using them. That's why REDC (auction.com & $5+ billion in sales last year) now has "online only" auctions in addition to their ballroom-style auctions.

Prior to the popularity of the Internet, only live auctions were available. A live auction is successful in drawing attention, but there is substantial marketing cost and coordination involved.

Today, however, the Internet has made the auction process available to more people and is changing the real estate auction industry. An online auction can be just as successful in drawing attention and can cost much less. The success will still be related to how well it is advertised and whether it’s a good deal, but an online auction is an easier alternative than it use to be. Sellers are looking for more options, an online auction provides one.

Another reason that online real estate auctions are becoming popular is because buyers are more comfortable bidding online. No longer are online auctions just for “as-is”, sight unseen properties. The best success comes by opening the property for previews and allowing inspection periods and/or providing inspection reports. Another reason for their popularity is that it’s easier to bid than to write up a sales contract. All negotiation is automated and done on line.

An auction is one of the best ways to market or find a deal on a property. As buyer confidence grows and the online Real Estate Auction successes continue, more sellers will move to online auctions, changing the way real estate is bought and sold for everyone.

Multiple Offers: A good thing?

Getting multiple offers on a property is a good thing, right? 2 offers is usually not a problem, but what about 3, 4, 5, 6 or more?

On one level it's a good problem to have, but it sure can be a lot of work. That's why I love the online auction model for real estate. You can get all interested buyers competing online in an open format and all the negotiation happens automatically.

It's much easier, exciting to watch and you end up with the highest price for your seller.

To me, it just makes sense. The process is more effective than the "list & wait" model and our market needs something that will attract more buyers and accelerating the sale of properties.

What I don't understand is why I'm finding only few real estate agents open to the concept of using online auctions?

Is it too new? Does an "auction" have a bad connotation? Do agents not understand the process? Maybe all of the above?

Why the resistance and hesitation?

I'd love your feedback.

Real Estate Online Auctions: 101

It's no surprise that online auctions are quickly becoming the most powerful way to sell real estate in any market. The problem is that most people don't understand the process and the strategies to make them successful.

Hopefully, I can help clarify the use of online auctions and share some basic strategies.

The general philosophy of an auction is that the terms are the same for all buyers and the competition between buyers determines the price. This is different than the traditional MLS listing where terms are usually negotiated with price.

One big misconception about auctions is that the seller has to sell his property at the highest bid regardless of what that is. The fact is, that most online auctions are done "subject to seller confirmation". In other words, the seller has the right to accept, reject or further negotiate the highest bid. The online auction is a process to get the highest offer possible to present to the seller.

Here are some basic online auction strategies...

Opening Bid - This amount is usually around 50-60% of the target price. However, when the marketing is done well, you can be just as successful starting the bid at $1. The strategy can be different based on the property.

Access to property - If you expect to get top dollar for a property, people have to be able to get in and see it. Have at least 3 well planned and marketed open house previews. The smaller the window (2 hours is good), the better chance of having multiple buyers in at the same time stimulating competition. Bonus: List in the MLS 5 days prior to first showing and don't let anyone in before the first scheduled preview.

Pictures & Video Tours - A huge difference on getting people interested in visiting the property and placing a bid.

Marketing - Makes all the difference. The benefit to an online auction is you are doing heavy marketing for a limited pre-defined time. This helps manage the costs. Bonus: Get a mortgage broker to pay you a fee to be at your open house previews. They get leads and you can help cover marketing costs.

These are just some of the many strategies that come into play while using online auctions. I'm sure as you start using this process and start thinking "outside" the traditional sale process, you'll come up with even more.

Creating an "auction" environment

The ideal selling situation is whenever you can have multiple buyers competing for your listing all at the same time.

Here are some ideas that will help you create this "auction" environment.

1. Price - The price has to be as good as or better than anything comparable in the area.
2. Condition - The house should show very well, even be professionally staged if possible
3. Quality Listing - Put quality photos, a video tour (if possible), and a well written property description in the MLS listing.
4. Limit Access - Ideally you put the quality listing in the MLS on a Sunday night with no showings until the following Friday. In addition, the first showings on Friday are limited to a 2 hour window. This gets all interested buyers and agents in the property at the same time creating competition.
5. Require 48 hour offer response time - Let all agents submitting offers know you will need 48 hours to respond.

This process can work well in the right markets with the right homes. I realize it's not always successful, but it's easy to try.

The one drawback is that in the multiple offer situation, buyers don't typically know where they stand. They are often told to submit their "highest & best".

This is where technology can help. With a couple more steps you can do the same thing but accept all bid/offers online in an open format with a defined deadline. This systematically allows buyers to compete with others and gets you and your seller the best price without all the added paperwork (i.e. offer/counter-offer/counter-counter, etc)

To see how this process is being successfully used today, join us Thursday at 1 pm CST

Click Here to Register

Are you ready for the bidding wars?

The market is starting to turn, there’s talk of the “bottom” being reached and buyers are not such a rare commodity anymore. Now we are hearing about multiple offers and the start of bidding wars.

It’s all great news, but there’s still a lot of inventory out there. How can you get your listings noticed? How can you negotiate with multiple buyers to achieve the highest offer for your sellers?

One growing strategy is to create urgency and stimulate demand by using an online auction. An online auction provides open competitive bidding to achieve the highest possible offer for your listing.

There are still a lot of misconceptions about online auctions, so here are a few things you should know.

1. Auctions are NOT only for distressed properties - While distressed properties are sold by auction, they are not the majority of auction sales today. More luxury and brand new homes are being sold by auction than ever before.
   
   
2. Auctions don't force the seller to take the high bid - Auctions advertised as "absolute" force a seller to take the high bid. However, the majority of real estate auctions are done "subject to" seller confirmation.
   
   
3. An auction does help capture the best sales price – Just like multiple offers on a typical MLS listing, an auction can yield the best price by creating competition.
   
   
4. An auction does give you 3 chances to sell - Auctions create urgency and get buyers to act either before bidding opens, during the open bidding period or after bidding ends (if the high bid isn’t accepted by the seller).

If you’re interested in seeing how Realtors are using online auctions to get buyers competing for their listings, click here to register for our FREE webinar on Thursday August 13h at 1pm CST.

Create a bidding frenzy!

If you've ever attended a well run "live" auction, you've seen the competition and bidding frenzy it can create.

Creating a bidding frenzy is a powerful and exciting way to sell real estate in a "live" setting, but doing it online is easier.

How do you create an online bidding frenzy? Here are some strategies.

Price - Opening bid must be perceived as a great value.

Limit Access - By limiting access to the property through scheduled open houses, it forces all buyers to be there at the same time, creating competition.

Limit Time - Making the property available for only a limited time creates urgency for the buyer to act.

Easy Offers - Allow interested buyers and their agents to bid online from the comfort of their home or office.

Open Competition - Allow everyone to see the current high bid. It's easier for a buyer to justify an increase of their offer if it's only $500 or $1000 more than the current offer.

These strategies combined with good marketing are all it takes to succeed with online auctions.

I'll discuss marketing strategies next week.

Our first NAA trade show

Kevin and I had the privilege of attending our first National Auctioneers Association (NAA) Conference and Trade show in Kansas City last week.

As an exhibitor, we enjoyed meeting and talking with several auctioneers from around the country as well as attend a couple of the sessions.

It was interesting to see how technology is playing a larger part in the auction industry. If an auctioneer wasn't using online bidding yet, they were thinking about it and staying aware of the latest technologies.

I think Ebay has done a lot for the auction industry by making the public more open to the auction method of buying and selling.

Overall it was a wonderful experience and we look forward to next year.

Luxury Rhode Island Home - Online Auction

As the number of real estate auctions continue to grow, it's clear that they are no longer just for distressed and run down homes. Auctions for luxury homes are becoming more common and I'm seeing even more done with online bidding.

The Internet is a priceless tool for getting attention and activity on any property and using an online auction helps focus the activity. In addition, buyers love the convenience of being able to place a bid anywhere they have an Internet connection.

Check out the current auction ending July 7th for a beautiful home in Newport, Rhode Island. Originally listed for $14,000,000 the opening bid is only $6,500,000.

325 Ocean Avenue - Newport, Rhode Island - Click Here

Real Estate Auctions - What agents need to know!

Real estate auctions are becoming mainstream in many parts of the country because many sellers can't afford to wait for an offer and need a more proactive approach.

In addition, many banks are taking their listings that have been sitting with an agent for over 100 days and giving them to large auction houses such as REDC, Hudson & Marshall, and Williams & Williams to liquidate.

Regardless of the reasons, auctions attract buyers and accelerate the sale of a property. It's important, as a real estate agent, you understand them. Here's what you should know.

1. Auctions are not magic - When done right, auctions attract lots of attention and get buyers into a property, but they bring fair market value. If a seller is upside down with their mortgage, haven't had any interest after sitting 6 months in the MLS, don't expect an auction to "magically" find a buyer willing to pay close to the MLS price.
   
   
2. Marketing is key - Auctions attract attention, but people still need to know about them.
   
   
3. Auctions are NOT only for distressed properties - While distressed properties are sold by auction, they are not the majority of auction sales today. More luxury and brand new homes are being sold by auction than ever before.
   
   
4. Auctions don't force the seller to take the high bid - Only auctions advertised as "absolute" force a seller to take the high bid. The majority of real estate auctions are done "subject to" seller confirmation.
   
   
5. Technology gives you access - Before the Internet, the only option for using the auction method to sell real estate was by working with an auctioneer. Now, the technology is so good you can use the auction method aka "online bidding" to market and sell your listings yourself.

Real estate auctions are here to stay, regardless if we're in a buyer's or seller's market and Internet technology gives you the ability to get involved.

Pick up a FREE copy of my 7 steps to online auction success to help you better understand the process and strategies.

Creating Urgency and Competition for Buyers - Priceless!

Recently, one of our new customers ran her first online auction to sell one of her properties. It was another good example of how creating urgency and competition, gets buyers to take action.

Being new to the process, she was very diligent in reading all of our training materials and strategies, watching the how-to videos, etc. She also called and e-mailed me several times through the process with other questions and to get my opinion.

Now the property she was selling was minimal at best, it was a 2 bed, 1 bath 860 sq. ft. home with no basement, but it was nicely rehabbed and ready to move in. It was a good property for a landlord because it could be rented and would cash-flow.

The auction was open for online bidding for 20 days. It was listed in the MLS with bidding information, signs in the yard and 2 open house previews. She followed the process as suggested.

With 4 days left she had two interested buyers and they were taking turns being the high bidder. On the last day a 3rd buyer jumped in and got involved in the bidding.

Due to all the competition, one of the 3 buyers told her they were placing a bid for full price as listed in the MLS and sending a contract.

Rather than end the auction early and accept the full price offer, she decided to let it run it's course. The auction never did reach the full MLS listing price (close - a few thousand less), but that buyer who really wanted it still wrote their offer at full price. She was thrilled and surprised because she wasn't expecting to get her MLS listing price.

To me, it's just another example of how the online auction process can create competition and urgency for buyers. This results in "demand" which is always a good thing for a seller.

Real Estate Online Auctions - Strategies for Success

Over the past 4 years, I've been focused on using Online Auctions to market and sell real estate.

There is a huge opportunity right now to take advantage of all the buyers looking for deals in today's market. When you sell using an online auction you draw more buyers than any other method. Buyers today know (thanks to the media) that there are great deals to be had, they just don't know where to look. When you sell using an auction, you are telling them LOOK HERE.

However, even with this great opportunity, there is still a lot of confusion on what is needed to make an online auction successful. Here are a few strategies that will help you succeed with this powerful method.

1) The property being sold MUST be a good value. If a property is listed in the MLS and isn't getting offers, don't expect the online auction process to yield anything different unless the owner is willing to take at least a 10% discount.

2) Take at least 10 pictures of the property, 20 is better and pictures plus a video tour is best.

3) Schedule and hold at least 2 open house previews, 3 is best.

4) Place signs in yard and directional signs on nearby street corners. During open house previews make sure your open house signs get attention (i.e. balloons or ideally hire a person to stand and hold it).

5) MLS - Put the listing in the MLS with information about the online auction, open house preview times and a link to the listing where bids can be placed.

6) Marketing - Craigslist every 2 days (per their terms of use), flyers in the front yard, e-flyers, postcards to neighbors, newspaper, etc. Marketing is key. An auction naturally will get buyers to take notice and react, but they still need to know about it.

These are just some of the main strategies that will help an online auction be successful, hope you can use them in your next or first online auction.

The unrealized benefits of using online auctions

Technology continues to provide better tools and strategies for selling real estate. It only makes sense that real estate agents who stay on the "leading edge" will have an advantage over those who don't.

Using online real estate auctions is one strategy that can give an agent the "edge" and we're still in the initial stages of them taking hold in the market place.

Many real estate agents don't realize, that besides selling the property being auctioned, there are several "side" benefits of using an online auction. Here are some of them...

1) Since all the bidding is online, you get a record of everyone that placed a bid. At the end of the auction you will have a high bidder but you will also have a list of the other bidders contact information that you can invite to your next auction or help them buy another property.

2) Marketing a property through the auction process attracts many more buyers to your open house "events". You can collect information on these buyers so you can follow-up if they aren't the winning bidder and help them buy another property.

3) Since you attract more buyers to your open house "events", you can approach a mortgage broker or lender to pay to be on site at your open house. If done right, you can collect enough to cover all the costs of advertising, catering, etc.

4) Your auction marketing will attract other homeowners who are tired of waiting for their property to sell. Those who are motivated will be very interested in having you do an online auction for their property. One online auction almost always leads to another one and many times several more.

5) The majority of winning bidders at an online auction are not represented by a buyer's agent. That means there is a good chance you won't have to split your selling commission.

These are some of the many added benefits of using online auctions to market and sell a property that most agents don't realize or capitalize on.

Hope you found it helpful!

Real Estate Online Auctions - more FAQ's

After 14 years of working in the computer industry, I got involved in real estate. I was drawn to the concept of online real estate auctions and I've spent the last 4 years using them. Here are some more answers to common questions about them.

Q) How do auctions give you 3 opportunites to sell?

A) By holding an auction it's not uncommon for someone to bring a written offer when the auction is announced to try and get it without competing with others. The second opportunity is when the auction ends with a winning bidder. The third opportunity is from follow-up with all interested buyers if it doesn't bring a winning bid.

Q) What about non-U.S. buyers?

A) An online auction makes a property open to a worldwide audience. I was surprised the first time I saw a buyer from France win an auction. It demonstrated to me that online bidding is an effective way to get a property in front of a worldwide audience.

Q) Will an online auction work in my market?

A) It depends. If you are in an area where most people have high speed Internet access, than it will work. If you're in an rural area where most people use dial-up and therefore aren't on the Internet much, it will be much harder.

Q) Do I need a special contract or process to sell through an online auction?

A) No. An auction is simply getting you to agreement on price and terms with a buyer. The standard contract takes over from there, just like any other purchase agreement.

Thanks for Reading! I hope you learned something.

Online Real Estate Auctions - More FAQ's

After 14 years of working in the computer industry, I was naturally drawn to the concept of online auctions when I got involved in real estate. I've spent the last 4 years using online real estate auctions and here are some more answers to common questions about them.

Q) Aren't auctions just for properties that need a lot of work?

A) No, not anymore. I'm starting to see auctions for brand new properties from builders and banks who just need to get rid of them. Owners of any type of property, who are motivated and must sell quickly, are turning to auctions for a solution.

Q) How long does an online real estate auction last?

A) Typically about 3-4 weeks. It depends on how well you plan your marketing campaign and how many open house "previews" you plan to do.

Q) Do I need a special license to do an online auction?

A) In every state, you need to be a licensed real estate agent to sell any property other than your own. Each state has different rules. New Hampshire is the only state that I've heard that requires you to have an auctioneer's license to hold an online auction.

Q) Aren't online auctions just a fad that will go away when the market gets better?

A) I don't think so. I think there are more auctions today than ever before because of the current market. However, I also think they provide a solution that is needed in any market, and sellers will find they are an excellent option for a property in high demand too. There are lots of examples on Ebay of a unique item selling for some crazy amount. What owner or real estate agent wouldn't want to watch hungry buyers fight it out online?

The other thing to realize is that the Internet is not going away. The younger generation is more affluent with it than ever. They will begin to expect more real estate transactions to move online. Online bidding for real estate will be a big part of that.

Thanks for Reading! In the next few days, I'll share some more FAQ's

Real Estate Online Auctions - FAQ's

I've spent the last 4 years using online auctions to market and sell real estate.

During that time, I've encountered a lot of confusion from both buyers and sellers. Here are some answers to some frequently asked questions.

Q) Will an auction force me to sell too low?

A) No, not if you set it up correctly. There are 3 main types of online auctions. If you use a Reserve Auction, you can set a hidden reserve price on the system and the auction will not be considered successful unless the reserve is met. If you use a Minimum Bid Auction, you don't set a system reserve but you can state in your terms that the winning bid is subject to seller approval (This type is commonly used for short-sales and bank owned property). The third type is an Absolute Auction, and this is the only type that could force you to sell it too low. When yo sell "Absolute" you are telling buyers that the high bidder is the winner regardless of how high bidding gets.

Q) Are online bids legally binding?

A) Yes, if the terms indicate they are and the online auction system has a trail to show the bid was made by the person. If you're interested in more details about this, here is a link to an article published on this subject in the March 2008 Auctioneer magazine. http://64.27.82.10/ActiveMagazine/getBook.asp?Path=AUM/2008/03/03

Q) What if the high bidder backs out?

A) There is no difference than having a signed sales contract on a property. You decide how much of an effort you want to take to pursue the person legally. Many Online auction systems now provide tools such as credit card capture so a penalty can be charged to the high bidder that doesn't perform.

Q) Are there any liens on the property?

A) Many buyers seem to think that an online auction is subject to the same terms of a foreclosure auction done at the courthouse where there could be other liens on a property. That is not the case. The property sold through an online auction goes through the same closing process that any "traditional" sale would go through. The title passes free and clear of all previous liens.

Q) What's the secret to being successful with an online auction?

A) A quality auction listing and good advertising. The online listing needs to contain thorough information about the property, terms that are easy to understand, many good pictures and a virtual tour, if possible.

You also need to have a good advertising plan. Auctions naturally attract attention but people need to know about it. Yard signs, open house "previews", fliers, local ads, Internet/e-mail marketing, post cards, etc. The more you let people know about it, the better the chance for success.

Hope this was helpful, I'll share some more next week.

Online Auction "Jolts" the Hamptons

Two weeks ago a couple of brokers in New York had great success running an online auction for properties in the Hamptons.

Here are some highlights from an article published after the auctions ended. A link to the full article is at the end....

A Prudential Douglas Elliman-sponsored online auction, run by brokers Vince Horcasitas and Enzo Morabitohas has helped bring buyers back to the market.

“We jolted the market,” Mr. Morabito said. “We jolted the brokers, we jolted the sellers, we jolted the buyers. We bred a little action. Our open houses yesterday were swamped.”

During the eight days that online bidding was going on, the activity surrounding the houses was significantly improved over what it had been and what other, non-highlighted properties, saw. In three days of open houses, Mr. Morabito and Mr. Horcasitas and their associates showed the 17 properties more than 100 times.

“It was a huge success for a couple of different reasons. We basically sold two properties, and we brought a tremendous amount of exposure to all the properties,” Mr. Horcasitas said. “We created a frenzy on a couple of properties. We had 25 people go through the [Bridgehampton] house on Sunday. They had 20 go through the one on North Main in Southampton [Village].”

In all, 50 bids were entered over the eight days the auction was live by a total of 14 different bidders. Most of the bids came on Sunday, the last day of bidding.

To read the entire article click here

It's a great time to be a buyer!

There is no doubt that there are great deals to be had in today's real estate market.

Motivated sellers, low interest rates and government incentives of up to $8,000 for first time home buyers are just a few of the factors that are turning the market around.

I heard today that we are starting to see a big increase of first time buyers hit the market. That should have a ripple effect all the way up the line.

Buyers are even finding deals in places like The Hamptons, New York. Check out this article for more details.

Auction.com for $1.7 million - are you serious?

REDC which is famous for the real estate foreclosure auctions going on in ballrooms across the country has just bought the domain www.auction.com for $1.7 million.

To me that indicates, 2 things:

1) REDC is doing extremely well with their auctions.

2) REDC believes real estate auctions will continue to grow as an effective way to sell real estate quickly. (I agree, and see it as an opportunity for local agents to piggy-back on their success)

To read the entire article, click here.

Online auctions hit the Hamptons

Here is a link to an interesting article about a progressive real estate office in New York using online auctions to move their listings. If they can make it work in the Hamptons, you can make it work in your market!

Read it here: Hamptons under the Hammer

Is the media helping you market?

Everyday we hear the "doom & gloom" of the economy from the media. Even if there is something positive, they tend to put some sort of negative spin on it.

Real estate is talked about continually, foreclosures, loss of equity, homeowners in trouble. It makes it kind of difficult to sell properties in today's market...Unless, you use the media to your advantage.

The media often shows some of the great deals buyers are getting on real estate. As a result, buyers are starting to come back in the market, but are easily overwhelmed with the choices.

That's why you need a way to stand out to these buyers, and an auction does that.

Real estate auctions are growing fast, because they attract buyers and get the highest and best offer in the shortest amount of time. The media is helping by the messages they keep sending "real estate is cheap", "great time to be a buyer", etc. Now, when a buyer sees an auction sign in a yard, an ad in the paper or any marketing related to auctions, they take notice more than ever before.

On top of that, more real estate auctions are moving online. They are easier, the marketing is less expensive and Realtors can do it themselves.

When you have a motivated seller and they want to know what you can do to help them sell their property faster, why not offer an online auction?

Now is your opportunity to use the "doom & gloom" of the media to get more buyers interested in your listings than ever before! Are you taking advantage of it?

Living in a cave?

I ran across this fascinating story about a family who turned a cave in Missouri into their home. They are not able to get bank financing so they are trying to sell it on Ebay.

They have received so much exposure that the last time I looked they had over 900,000 views on their online real estate auction and there are still 11 days left.

Evidently they are having technical problems trying to answer questions and approve bidders and Ebay is working on it.

All this attention will surely bring a solution. I'm sure a bank will step in and offer financing or they will be able to sell it for a nice profit. It's another example of how well the Internet can work for marketing.

Here is a link to their blog and forum http://www.Caveland.US

Online real estate auctions ... do they work?

“Do online real estate auctions really work?” is a common question from anyone new to using online auctions to sell a property.

The answer: Yes, absolutely they work! That's why were seeing a huge shift of auctioneers and real estate agents to adjust their selling strategies and start using them.

Prior to the popularity of the Internet, only live auctions were available. A live auction is successful in drawing attention, but they require coordination and there's a substantial marketing cost involved.

Today, however, the Internet has made the auction process available to more people and is changing the real estate auction industry. An online auction can be just as successful in drawing attention and be done for much less cost. The success will still be related to how well it is advertised and whether it’s a good deal, but an online auction is an easier alternative than it use to be. Sellers are looking for more options, an online auction provides one.

Another reason that online real estate auctions are becoming popular is because buyers are more comfortable bidding online. No longer are online auctions just for “as-is”, sight unseen properties. The best success comes by opening the property for previews and allowing inspection periods and/or providing inspection reports. Another reason for their popularity is that it’s easier to bid than to write up a sales contract. All negotiation is automated and done on line.

An auction is one of the best ways to market or find a deal on a property. As buyer confidence grows and the online Real Estate auction success continues, more sellers will move to online auctions, changing the way real estate is bought and sold for everyone.

Will an online auction work in my area?

One common question from real estate agents who are new to online auctions: "Will it work in my area?"

The answer is that as long as people in your area have access to the Internet, than yes it will work. If people have no access or only slow dial-up than it will still work, just probably not as well.

Even if no one locally has Internet access, which is rare, you can still reach a world-wide audience of buyers and you just never know who may be interested.

The Internet is a powerful medium, and an online real estate auction will help you reach the most buyers possible in the shortest amount of time.

So, yes an online real estate auction will most likely work in your area! The real question is, will you be the leader or follower?

Online real estate auctions, what are the advantages?

The traditional way of selling properties involves listing in an MLS, doing some advertising and maybe holding some open houses. It works okay if you have lots of patience, but how do you stand out from every agent with every property doing the same thing? How do you create a sense of urgency for your buyers?

This is where online real estate auctions come in. They provide a great option for you to sell your listings. It minimizes the hassles of prospects visiting the house frequently at untimely hours as well as attracts more buyers than any other method of selling.

Here is a list of some of the advantages of holding an Online real estate auction.

1. Reach: A huge advantage of an online auction is that you can attract buyers from anywhere in the world. The more buyers you attract, the greater the competition and higher the bids that come in.

2. Control: You decide the date and time the auction will end. You decide when to hold the house open for previewing. The time you spend marketing it is limited to 30 days or less.

3. Competition. It is a known fact that when buyers compete at an auction it drives up the price. Online real estate auctions are no different. The more buyers you attract the greater the excitement and higher the competition.

4. Automation. An online real estate auction lets you negotiate with multiple buyers at the same time in real-time. No paperwork, just let technology take over.

5. Buyer leads. An online real estate auction only produces 1 winning bidder, but it also produces a list of interested buyers (non-winners) that you can turn into bidders or buyers on your other listings.

Regardless of what type of real estate market we are in, an online real estate auction provides a great way to attract more buyers, create competition and urgency and ultimately sell your properties for a better price.

Are you getting the most out of the Internet?

There's no question the Internet is an important part of any real estate business. I can't imagine there's any active real estate agent who doesn't have a website or a least a web page on their company's site.

After all, with over 84% of buyers searching for homes online, you'll struggle to compete without one.

However, it's not just having a website, it's what you do with your website to provide value. Some real estate agents are reaching out by using social media, virtual tours, SEO strategies and blogging which are all great strategies, but there's still something missing.

I believe the real opportunity is being able to engage and negotiate with buyers in real-time. One way to do this is by accepting offers/bids online for your listings. When you allow buyers to bid online, you leverage technology to create urgency, negotiate with multiple buyers at once and get your client the highest and best offer.

Using online bidding (a.k.a. an online auction) takes your listing to the next level. Now, not only can buyers see pictures and videos and all the details about a property, they can submit an offer (bid) from anywhere with an Internet connection.

The Internet is truly a powerful medium, make sure you are leveraging it, the best you can!

Online real estate auctions ... exciting to watch!

Last Friday we captured the end of one our customers listings on video. This 2 minute video is a great example of the bidding frenzy that can occur as an auction winds down.

What's especially interesting in this example is that the listing agent didn't do any of the things we teach to market it. There were no auction signs in the yard, there were no open house previews and there was no effort in marketing it. This was a sort of "test" for them.

I strongly believe that any listing agent who embraces this strategy and works the "whole" process will dominate in their market.

Click here to watch the video

Enjoy!

What can you learn from "live" auctions?

I've attended several "live" real estate auctions in the past to observe and learn. Most of them I've attended were successful, but I've also attended a few that haven't been.

There was even one I attended that didn't receive a bid. I really felt bad for the auctioneer and the seller. All the time and money they spent and only about 20 people showed up. Unfortunately, that's just part of the business.

There is a lot to learn by observing a live auction and the most important thing I've learned is marketing. If the auctioneer can't get people to show up, it doesn't matter how well he can work the crowd, the chance for success is minimal. For each "live" auction, thousands of dollars are usually spent on direct mail, newspaper ads, etc with no guaranteed results.

That's why I've been so drawn to using online auctions. The success is still greatly effected by the marketing, but it is much easier to get people to show up online than on site. I've seen it over and over again. If you do a good job marketing your online auction by using signs, holding open house previews, using craigslist and other Internet marketing, you will attract attention and you will receive bids.

Unfortunately, most people I see using online auctions aren't doing the marketing. Instead they throw it up on a site like Ebay, RealtyBid, or our site REIAuctions and expect it to sell. They are depending on the traffic to the site alone and that usually isn't enough.

The real key to successful online auctions is a strong marketing effort combined with the existing traffic on the auction site you are using.

It really isn't that hard, the cost of time and money is minimal, and the results are usually impressive.

Online real estate auctions take effort!

Putting a property up for auction online is only half the job. Yes, it's possible buyers may stumble across it and place bids, but the chances for success are greatly reduced if that is all you do.

There is an opportunity to stand out from the crowd, be different and be responsible for the success. If you list a property for auction and then use open house previews, yard and neighborhood signs, internet marketing and local marketing, your chance for success greatly increases.

An auction naturally draws interest, whatever you can do to let people know about it increases your chance for success. Don't sit back and wait, be a maverick marketer and see your success soar.