Over a sunny afternoon in Sarasota, an energetic crowd collects on the lawn of a top quality luxury estate. A loud and eager badinage, persiflage between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest wager and the bidders reply. Suddenly the bidders increase silent. The high prospective buyer holds his breath pending winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair alert, last chance” the auctioneer pauses, “SOLD! ” And in below 10 minutes another multimillion dollar house has changed owners. condos
Effective real estate auctions just like the one above are happening across North America and the Carribbean. Recently real estate deals have been on the rise, the rise in popularity is partly influenced by growing inventories and fading buyer confidence. Homes that were selling in weeks using traditional methods are now languishing on the industry unable to catch the attention of buyers at the same time seller’s lower prices. Many the real estate boom has ended but savvy buyers and retailers are profiting from real estate auctions.
Real Real estate Auctions Work in Up or Down Markets.
Irrespective of trends or market periods, real estate auctions offer an open and see-thorugh process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to take action now.
The auction method removes the “wait and see” attitude which will serve to further depress real estate values. Buyers are concerned about overpaying. Purchasers gain confidence with their purchases at real property auctions because they can see what others are willing to pay.
When ever market demand is high and inventories low, real estate auctions can deliver prices well above what a willing seller would have accepted in a negotiated private treaty deal. In good selling weather many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the desk. During up markets real estate auctions are the best way to set up top market price.
Assessing Your Property for Market
Not every property or seller for that subject constitutes a good prospect for auction. First of all sellers must be well prepared to sell now and for the present market value. As well a real estate market will not fix problems caused by an economic downturn in their market value of your property, if individual owes more than a willing buyer will probably pay, be prepared to come to closing with your check book.
Real estate that do well in real estate auctions have a top uniqueness factor. Question oneself, “What makes my property different from most others? ” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Property sales thrive on uniqueness. In the event your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most significantly retailers must be reasonable about setting a minimum put money. A seller must go through the lowest, most current comps and price below that to build the interest and urgency essential for a successful real estate public sale. Once the auction commences and qualified bidders start competing against one another you can watch the selling price increase.
Track down a Qualified Real House Auctioneer
Start by examining with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the twelve-monthly International Auctioneers Meeting where the latest techniques and innovations in the real estate auction industry are presented.
Figure out the company you are interviewing is a full time real estate market firm. Many real property agents are getting public sale licenses yet have no experience with the public auction method of marketing. Doing a successful real property auction is nothing like (private treaty) traditional real estate sales. Go with a property auction expert.