Here they are...
This actually happens about 20% of the time. I had an auction once where we got a written offer the first day I put the auction sign out. It turned out the buyer had seen the home when it was previously listed and finally got motivated to do something when he saw it go to auction. In this example, the seller agreed upon a price and we canceled the auction. By far, this was the easiest sale I've ever had.
2nd opportunity (Online bidding): This is the most obvious. At the end of the online auction, the high bidder puts the property under contract per the terms of the auction.
3rd opportunity (Post auction): If for some reason, the bidding doesn't meet the seller's reserve price, the auction process will have produced a list of buyer leads interested in the property. You can contact all of them, let them know the situation and give them the chance to submit their highest and best offer.
From my experience, using these 3 opportunities as part of your online auction strategy will help increase your success rate.If you'd like to learn more about using online real estate auctions join us September 8th at 2 pm EST
2 comments:
Of the remaining 80%, how many are sold at auction vs. not meeting the reserve price? and why? reserve too high or market not there for property?
Hi Steve - The success mainly depends on the person running the auction. Some of our customers have 98% success while others have less than 10%. The are 2 main reasons for the difference in success rate. 1) Marketing and 2) Realistic reserve price. Our customers who are most successful won't do an auction if the seller doesn't have a realistic reserve. Some won't do it at all unless the seller is willing to do it absolute. Hope that helps
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