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.
- 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.
- Marketing is key - Auctions attract attention, but people still need to know about them.
- 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.
- 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.
- 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.
Pick up a FREE copy of my 7 steps to online auction success to help you better understand the process and strategies.