Online Real Estate Auctions in Texas

Real Estate Disposition Corp (REDC/Auction.com) held an online only real estate auction in Texas this past weekend featuring 120 properties.

They reported yesterday that 95 percent of the properties sold for a total of $10.3 million in sales. Not too bad for one weekend and this was just part of their $47.4 million in total sales that includes their other auctions.

The great news for real estate agents in Texas and around the country is that those sales were all done online. No hotel ballroom to pay for and coordinate, no bid calling, just point buyers to the website and let them bid away.

The same technology to use online bidding is available to real estate agents today and it's a great time to take advantage of it.

Short sales: Getting creative

It's no secret that short sales are a lot of work and the reason why many real estate agents don't bother with them.

However, for the ones that do, it's frequently a challenge to get a reasonable offer to start the process with the lender.

One Solution : Some agents are turning to technology, by marketing a short sale through an online auction so they can get the highest & best offer within 2 weeks or less. This approach leverages the auction process to drive the demand and price up while also providing an offer that can be easier to justify because it was determined in an competitive bid situation.

Here is a simple overview of the process...

1. The property is marketed using an online auction platform (in coordination with the MLS) for as little as 1 week. It includes holding at least 1 open house preview, preferably 2. In the auction terms it MUST be clear that the high bid is subject to lenders approval. The online auction makes it simple for buyers and their agents to submit offers and it's all automated (No more juggling multiple offers and all the paperwork involved).
   
   
2. When it ends, the high bid is written up as an offer and presented to the lender. In addition, the agent also explains to the lender how the property was marketed through an online auction, and they provide stats such as number of people who visited the property, number of bids, number of people bidding, etc.
   
   
3. The short sale process is managed as normal, but the agent can also follow-up with the non-winning bidders and sell them other properties.

This is a very simple overview as there are a several other details that make an online auction successful.

If you are involved in short sales, you're welcome to come learn more about this progressive sales strategy. Real Estate Auction Webinar - Click Here

Are You Willing to be a Leader?

Online bidding will become the preferred method for selling real estate in the coming years. Here are some early indicators…

• REDC (Real Estate Disposition Corporation), the largest real estate auction company in the country, now sells more real estate through their "online only" auctions than their live ballroom events. As an example, for the week ending March 6th, 2010 they set a record sales volume of $71M sold and $43.2M of it (over 60%) was sold online.
  
  
• County courthouses around the country are beginning to sell their foreclosures through online bidding. In Dade County Miami they have sold 2,800 properties since they started in mid-January. Broward & Palm County have just announced they are implementing it as well.
  
  
• REDC has partnered with a company in the UK for “online only” auctions. They sold 57 properties at their first event in February.
  
  
• Tulare County – (Near Fresno CA) has just announced their Tax lien sales will now be done through online bidding.
  
  
• RE/MAX International is holding their first “live/online” hotel auction event with 150 homes on April 10th in Denver.
  

Be a Leader & join our next webinar to see how you and your team can use online bidding with your listings in your market today.

Real Estate Online Auction Webinar

Real Estate Auctions Today - What's going on?

Most people are not aware of what's going on with real estate auctions today, so I'd thought I'd share some highlights…

• Celebrity Cher sold a Hawaii property through an auction in January for $8.7 Million

• Ballroom & studio auctions where 100's of REO properties are being sold are becoming more common and frequent in the larger cities.

• The largest real estate auction company right now is Real Estate Disposition Corporation (REDC/auction.com). For just the first 9 weeks of 2010 they have already sold 7,488 properties for a total of $403 Million.

• REDC is now selling more real estate through their online auctions than their live ballroom events. As an example, for the week ending of March 6^th 2010 they set a record sales volume of $71M sold and $43.2M of it (more than half) was sold online.

• REDC just partnered with a company in the United Kingdom to use online bidding only. In their first event this past February they sold 57 properties.

• County courthouses around the country are beginning to move their foreclosure auctions online. The most recent example is Dade County in Miami.
  

• Real estate brokers & agents who recognize the opportunity are going to auction school or partnering with experienced auctions.

• RE/MAX International in Denver has partnered with a local auction company and is holding their first “live” hotel auction event with 200 homes on April 10^th.

If you're interested in learning more about online real estate auctions,join our next webinar

Online Real Estate Auctions - A new option for Agents

After 14 years of working in the computer industry, I was naturally drawn to the concept of online auctions when I got my real estate license. I've spent the last 5 years using online real estate auctions and here are some answers to common questions about them.

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

A) No, not anymore. Auctions are now being used for brand new properties from builders and banks. Owners of any type of property, who are motivated to sell quickly, are turning to auctions for a solution. Celebrity Cher just sold a property she owned in Hawaii this past January via auction for $8.7 Million.

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

A) Typically about 3-4 weeks. However, the speed of information is so fast and technology so good, that one real estate agents does it in 2 days. It all depends on 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, Rhode Island & Georgia are the only states that I know of that require 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 have motivated buyers fight it out online for their property?

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 is changing the traditional list & wait model.

Many progressive Realtors are already using them in their markets, if you want to learn how to join them, register for our next webinar.